Abstract
Determination of optimal production rate and production stopping time for perishable seasonal product, which experiences increasing-steady-decreasing type time dependent demand over the sales season, is essential because the product becomes obsolete or its usefulness decreases at the end of the season. In this paper, we develop an inventory model to address this issue by assuming that the demand is a time-dependent ramp-type function and on hand inventory deteriorates at a uniform rate. Length of the season is fixed and production rate depends on demand rate. A small fraction of produced items is defective and is not reworked. Shortages are not allowed. The profit function is formulated and its' concavity is verified. Some interesting results about production rate and production stopping time are derived analytically for better coordination between excessive stock and shortages. A numerical example is presented and sensitivity analysis of the model is carried out.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Mathematics in Operational Research
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
