Open AccessAn Inventory Model based on Imperfect Production with Shortage Backorder
Author(s) -
Anjali Harit,
Anurag Sharma,
Sundaram Singh
Publication year - 2020
Publication title -
international journal of recent technology and engineering
Language(s) - English
Resource type - Journals
ISSN - 2277-3878
DOI - 10.35940/ijrte.a3085.079220
Subject(s) - imperfect , economic shortage , production (economics) , idle , order (exchange) , sensitivity (control systems) , computer science , economic order quantity , operations research , raw material , holding cost , economics , microeconomics , business , supply chain , mathematics , engineering , marketing , philosophy , linguistics , chemistry , organic chemistry , finance , electronic engineering , government (linguistics) , operating system
In this paper, we discussed about the imperfect items. In practice items may get damaged due to production or transportation conditions. Each lot receives some imperfect items. This model also considers the effects of business strategies such as optimal order size of raw materials, production rates and unit production costs, and idle time in different areas on the cooperation of marketing systems. The model can be used in industries such as textiles and footwear, chemicals, food. We develop an inventory model based on imperfect products and shortages. We consider demand is constant and continuous. Purpose of this study is not only to find the retailer`s optimal replenishment policies but also to minimize the total average cost. Finally, a numerical example is presented to illustrate the proposed model and sensitivity analysis of the optimal solution concerning parameters is carried out using the Mathematica 10.0 software.