Title: EPQ models for deteriorating items with stock-dependent production rate and time-dependent demand having three-parameter Weibull decay

Authors: Essey Kebede Muluneh; K. Srinivasa Rao

Addresses: Department of Statistics, Andhra University, Visakhapatnam 530 003, Andhra Pradesh, India ' Department of Statistics, Andhra University, Visakhapatnam 530 003, Andhra Pradesh, India

Abstract: In this paper, we develop and analyse an inventory model for deteriorating items with the assumption that the production rate is dependent on stock on hand. It is further assumed that lifetime of the commodity is random and follows a three-parameter Weibull distribution. Using the differential equations, the instantaneous state of inventory is derived. With suitable cost consideration the total cost function is obtained. By minimising the total cost function, the optimal ordering policies are derived. Through numerical illustrations the sensitivity analysis is carried. It is observed that the stock-dependent production parameters and the deterioration distribution parameters have significant influence on optimal production scheduling and total cost. This model also includes some of the earlier models as particular cases for specific values of the parameters. This model is much useful in analysing several production processes.

Keywords: EPQ models; stock-dependent production; Weibull decay; production scheduling; deteriorating items; production rates; time-dependent demand; economic production quantity; inventory modelling.

DOI: 10.1504/IJOR.2012.047091

International Journal of Operational Research, 2012 Vol.14 No.3, pp.271 - 300

Published online: 11 Jan 2015 *

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