Two level production inventory model with exponential demand and time dependent deterioration rate

Narendra Kumar1*, Dharmendra Yadav2 and Rachna Kumari3

doi:10.26637/MJM0S01/06

Two level production inventory model with exponential demand and time dependent deterioration rate

Authors :

Narendra Kumar^1*, Dharmendra Yadav² and Rachna Kumari³

Author Address :

¹Government Girls Degree College, Kharkhauda, Meerut, Uttar Pradesh, India.
²Vardhman College, Bijnore, Uttar Pradesh, India.
³Meerut College, Meerut, Uttar Pradesh, India.

*Corresponding author.

Abstract :

In this paper, a production inventory model is developed by considering two different rates of production with exponential demand rate. It is assumed that rate of deterioration is linear function of time and shortages are not allowed. Production rates are different in two different phases of production. Likewise demand rate also changed. Optimal production inventory model is developed to determine the optimal production quantity and minimized the total cost, i.e. minimized the sum of production cost, setup cost, holding cost and deterioration cost. A numerical example for the verification of the problem is also given. Sensitivity analysis is also carried out for the different parameters.

Keywords :

EPQ, time dependent deterioration rate, exponentially increasing demand, and different production.

DOI :

10.26637/MJM0S01/06

Article Info :

Received : December 24, 2017; Accepted : January 21, 2018.