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A production inventory model has been developed in this paper, basing on constant production rate and market demand, which varies time to time. Seeing the demand pattern the proposed model has been formulated in a power pattern which can be expressed in a linear or exponential form. The model finds the total average optimum inventory cost and optimum time cycle. The model also considers the small amount of decay. Without having backlogs, production starts. Reaching at the desired level of inventories, it stops production. After that due to demands along with the deterioration, it initiates its depletion and after certain periods the inventory gets zero. The model has also been justified with proving the convex property and by giving a numerical example with the sensitivity test.

A Production Inventory Model of Power Demand and Constant Production Rate Where the Products Have Finite Shelf-Life