Title: A production-inventory model for perishable items with demand dependent production rate, shortages and variable holding cost

Authors: Ruma Roy Chowdhury; Santanu Kumar Ghosh

Addresses: Basic Science and Humanities Department, University of Engineering and Management, Kolkata, West Bengal – 700156, India ' Department of Mathematics, Kazi Nazrul University, Asansol, West Bengal – 713301, India

Abstract: This model investigates the optimal time at which a production cycle should be stopped and then resumed in a production-inventory system, in order to keep shortages under control. This study considers a perishable item that decays at a constant rate. Year 2020 has seen a sudden surge in the demand of masks, PPEs, etc. to combat COVID-19. Such demand, which follows an exponential distribution, has been considered. The production rate is taken to be a linear function of demand, so as to cope up with an exponential market demand. The holding cost is taken to be a linear function of time. Shortages are allowed to occur and are completely backlogged. This model handles variable production, variable demand and variable holding cost simultaneously. The model is illustrated by a numerical example. Sensitivity analysis is carried out and has been detailed with the help of graphs. A case study has also been done.

Keywords: demand dependent production rate; exponential demand; time dependent holding cost; backlogged shortages; constant deterioration.

DOI: 10.1504/IJPM.2022.122571

International Journal of Procurement Management, 2022 Vol.15 No.3, pp.424 - 446

Received: 16 Jul 2020
Accepted: 16 Jan 2021
Published online: 03 May 2022 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article