Authors: K. Venkata Subbaiah, S.V. Uma Maheswara Rao, K. Srinivasa Rao
Addresses: Department of Mechanical Engineering, College of Engineering, Andhra University, Visakhapanam-530 003, Andhra Pradesh, India. ' Department of Marine Engineering, College of Engineering, Andhra University, Visakhapanam-530 003, Andhra Pradesh, India. ' Department of Statistics, College of Science and Technology, Andhra University, Visakhapanam-530 003, Andhra Pradesh, India
Abstract: In this paper, we develop and analyse an inventory model for perishable items with alternating production rates. Perishability is assumed to be random and follows a three parameter Weibull distribution. The three parameter Weibull distribution includes increasing, decreasing and constant rates of decay. Alternating production rate is more common in practical situations as non-availability of raw materials, power breakdown and market fluctuations etc. affect the production. Optimal operating policies are obtained by using the differential equations. Numerical example is presented to illustrate the model. Sensitivity analysis is also carried out to study the effect of deterioration and cost parameters on optimal policies. This model is much useful in analysing the inventory situation arising at places like chemical industries, food processing industries, etc.
Keywords: economic production quantity; EPQ; Weibull decay; alternating production rates; production cycle; inventory modelling; perishable items; deteriorating items; cost parameters.
International Journal of Advanced Operations Management, 2011 Vol.3 No.1, pp.66 - 87
Published online: 30 Sep 2014 *Full-text access for editors Access for subscribers Purchase this article Comment on this article