TAILIEUCHUNG - Production inventory models for deteiorative items with three levels of production and shortages
In this paper, three level production inventory models for deteriorative items are considered under the variation in production rate. Namely, it is possible that production started at one rate, after some time, switches to another rate. Such a situation is desirable in the sense that by starting at a low rate of production, a large quantum stock of manufacturing items at the initial stage are avoided, leading to reduction in the holding cost. | Yugoslav Journal of Operations Research 27 (2017), Number 4, 499-519 DOI: PRODUCTION INVENTORY MODELS FOR DETEIORATIVE ITEMS WITH THREE LEVELS OF PRODUCTION AND SHORTAGES Chickian C. KRISHNAMOORTHI RVS College of Engeneering and Technology, Coimbatore, India srivigneswar_ooty@ C. Karpagam College of Engeneering, Coimbatore, India Received: June 2015 / Accepted: May 2016 Abstract: In this paper, three level production inventory models for deteriorative items are considered under the variation in production rate. Namely, it is possible that production started at one rate, after some time, switches to another rate. Such a situation is desirable in the sense that by starting at a low rate of production, a large quantum stock of manufacturing items at the initial stage are avoided, leading to reduction in the holding cost. The variation in production rate results in consumer satisfaction and potential profit. Two levels of production inventory models are developed, and the optimum lot size quantity and total cost are derived when the production inventory model without shortages is studied first and a production inventory model with shortages next. An optimal production lot size, which minimizes the total cost, is developed. The optimal solution is derived and a numerical example is provided. The validation of the results in this model was coded in Microsoft Visual Basic . Keywords: EPQ, Deteriorative Items, Cycle Time, Demand, Three Levels of Production, Optimality. MSC: 90B05. 500 C. Khrishnamoorthi, / Production Inventory Models 1. INTRODUCTION Тo be cost competitive and to acquire decent profit in the market, means that a firm needs good inventory management. Inventory management has been developing for decades both in the academic fields and in real practice to achieve these objectives. The problem of deteriorating inventory has received considerable attention in recent .
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