A deterministic inventory model of deteriorating items with two rates of production and shortages. (English) Zbl 1061.90005

Samanta, G. P.; Roy, Ajanta

Tamsui Oxf. J. Math. Sci. 20, No. 2, 205-218 (2004).

Summary: This paper presents a continuous production control inventory model of deteriorating items with shortages. It is assumed that the production rate is changed to another at a time when the inventory level reaches a prefixed level \(Q_1\) and continued until the inventory level reaches the level \(S(>Q_1)\). The demand rate is assumed to be constant. The production is started again at a time when the shortage level reaches a prefixed quantity \(Q_2\). For this model the total cost per unit time as a function of \(Q_1\), \(Q_2\) and \(S\) is derived. The optimal decision rules for \(Q_1\), \(Q_2\) and \(S\) are computed. Results are illustrated by numerical example.

MSC:

90B05

Inventory, storage, reservoirs

Keywords:

continuous production control inventory model; optimal decision rules; constant demand rate