Development of An inventory model with Volume flexibility, random deterioration and increasing exponentially demand rate

Abstract

A volume flexible inventory model is developed. This model is developed for deteriorating item by assuming that the deterioration rate is depend on a parameter and time. The production rate is variable, production cost become a function of production rate, unit cost depending upon material cost, labour cost and tool cost. The demand rate is increasing exponentially shortages are allowed. Cost minimization technique used to find out optimal values for different inventory variables.