Development of EPQ Model with Time Induced Demand Under Reduction Delivery

Abstract

In this paper production inventory model with integrates cost reduction delivery policy is considered. Production and demand both are simultaneous process in factual globe Production and demand rate are considered to be time-linked. Two model (i) production inventory and (ii) production inventory model with integrating cost reduction cost delivery policy. The mathematical formulations are provided to find optimal solution for both models. Purpose of this learning is to obtain optimal order quantity and to investigate the effect of reduction of cost delivery policy in the EPQ (Economic Production Quantity) model, optimal production extent model is developed which minimizes the total cost. The sensitivity analysis is discussed for the variation of different parameters