Title: A production stock model for a distributed deteriorating product with both price and time dependent demand rate under inflation and late paying allowing shortages
Authors: M. Dhivya Lakshmi; P. Pandian
Addresses: Department of Mathematics, School of Advanced Sciences, Vellore Institute of Technology, Vellore, Tamil Nadu, India ' Department of Mathematics, School of Advanced Sciences, Vellore Institute of Technology, Vellore, Tamil Nadu, India
Abstract: This paper develops a production stock model for deteriorating products with shortages under the effect of inflation and late paying in which demand is a function of selling price and time. In this article, the model is considered with different deterioration distributions and various time dependent holding costs. This model aids in maximising the total inventory cost by finding the two production periods, the consumption period and the shortage period. Numerical example is presented to understand the developed model. Also, the effect of changes in different parameters on the optimal total cost is graphically presented.
Keywords: inventory model; production; deterioration; shortages; inflation; permissible delay in payments; total profit.
International Journal of Inventory Research, 2020 Vol.5 No.4, pp.284 - 317
Received: 30 May 2019
Accepted: 03 Nov 2019
Published online: 16 Sep 2020 *