Title: Optimising multi-level production model with diverse production rates under inflationary pressures and shortage

Authors: Sachin Kumar Verma

Addresses: Department of Applied Science, Dewan VS Group of Institutions, Meerut, Uttar Pradesh, India

Abstract: The present research report focuses on an inventory model, specifically a production model, grounded in several astute assumptions that significantly enhance its effectiveness. By skilfully combining inventory and manufacturing management strategies within an inflationary economic context, the model achieves a greater level of credibility. This model assumes a multilevel production structure with varying production and demand rates, both of which are considered to be time-dependent exponential functions. Throughout the cycle, a constant deterioration rate is assumed. The inventory also experiences stock out situations following the production process. A numerical example illustrates a mathematical technique aimed at optimising the inventory cost function. Sensitivity analysis is conducted to further validate the model. The model's reliability is confirmed through verification. Mathematica-11 is utilised to determine the optimal solution.

Keywords: inventory management; production management; inflation; exponential demand; variable production rate; supply chain optimisation.

DOI: 10.1504/IJPM.2026.151115

International Journal of Procurement Management, 2026 Vol.25 No.2, pp.221 - 256

Received: 25 Jul 2024
Accepted: 10 Aug 2024
Published online: 14 Jan 2026 *

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