Abstract

In production inventory systems, there are situations, in which it is not possible to have single rate of production throughout the production period. Items are produced at different rates during sub periods so as to meet various constraints that arise due to change in demand pattern, market fluctuations etc. This paper models such a situation by assuming constant rate of demand a and varying rates of production pi during the time when the inventory level goes from (i — 1)Q to iQ (i=1,2,3, …, n) where Q is prefixed level. The production is stopped when the inventory level reaches nQ. Thereafter the stock is consumed by demand alone. The production is started immediately when the inventory level reaches zero. For this model the total cost per unit time as a function Q and n is derived. The optimal decision rules for Q and n, when the production rates pi form a decreasing sequence, are computed. Special cases are discussed. Results are illustrated by numerical examples.

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