Title: A production inventory model for deteriorating products with selling price dependent consumption rate and shortages under inflationary environment
Authors: Mohit Rastogi; S.R. Singh
Addresses: Centre for Mathematical Sciences, Banasthali University, Banasthali, India ' Department of Mathematics, C.C.S. University, Meerut, India
Abstract: In today's highly competitive market, every business needs a high investment which is directly correlated to the return of the investment. The business will not be advantageous, if the return rate of investment is lesser than the inflation rate. In almost developed models, it is believed that distinct costs related with inventory systems will be constant all the time but in reality it is not true. As the time increases, inflation becomes a considerable function and the costs related to the model differ. This research article presents a production inventory model for deteriorating products with selling price dependent demand and shortages under inflationary environment. The production rate considered here is a function of occurring demand. The shortages during stock out assumed to be partially backlogged. The intention of this study is to compute the optimal value of production period and shortage period. A solution procedure and numerical example are presented to illustrate the implementation of proposed study. A sensitivity analysis with respect to distinct system parameters is also presented to check the stability of the optimal solution.
Keywords: production; selling price dependent demand; deterioration; shortages; inflation.
International Journal of Procurement Management, 2018 Vol.11 No.1, pp.36 - 52
Received: 12 Jul 2016
Accepted: 16 Dec 2016
Published online: 12 Dec 2017 *