Open AccessAn Inventory Production Model for Deteriorating Items Allowing Price Discount with Permissible Delay in Payments
Author(s) -
Janardan Behera
Publication year - 2021
Publication title -
international journal of mathematics and computer research
Language(s) - English
Resource type - Journals
ISSN - 2320-7167
DOI - 10.47191/ijmcr/v9i10.09
Subject(s) - economic shortage , production (economics) , economics , time horizon , stock (firearms) , payment , econometrics , operations research , mathematics , microeconomics , engineering , mechanical engineering , linguistics , philosophy , finance , government (linguistics)
The present Paper deals with an inventory production policy for a ramp type deteriorating item over a finite planning horizon with constant demand, finite production rate and shortages are not allowed. The optimal number of production cycles that minimizes the average system cost is determined. The model permits inventory shortage in each cycle, which is completely backlogged within the cycle itself. Every cycle starts with zero stock and production. As production continues, the inventory begins to accumulate after meeting current demands. The excess inventory accumulated during the production period is used to account for demand and deterioration in the no-production period. Numerical examples, tables, and final concluding remarks are discussed in the subsequent sections. Numerical example solved by using Mathematica software.