Title: Evaluation of reordering time in a manufacturing inventory division

Authors: C.D. Nandakumar; S. Srinivasan; R. Sathiyamoorthi

Addresses: Department of Mathematics and Actuarial Science, B.S. Abdur Rahman University, Chennai, Tamil Nadu, India ' Department of Mathematics and Actuarial Science, B.S. Abdur Rahman University, Chennai, Tamil Nadu, India ' Department of Statistics, Annamalai Universtiy, Chidambaram, Tamil Nadu, India

Abstract: In this paper, a production process is considered which requires two kinds of raw materials as inputs to make a product. The two kinds of raw materials are stored separately. During the time of crisis like non-availability of the raw materials due to scarcity or delayed delivery or for some other reasons, the reserve stocks are utilised to continue the production process, as a result; the level of reserve stocks would come down and finally may go void. This may result into production halt. To avoid this situation, a reorder is made to maintain the level of reserve inventory as soon as the reserve level touches a particular level called the threshold level. Using the shock model and cumulative damage process technique, a stochastic model is derived to find the threshold level or the time of reordering, which helps the production system to eliminate the holding cost on excessive raw materials and also the loss arising from the shortage of raw materials. Numerical illustrations are provided.

Keywords: threshold level; reserve inventory; break down; random time points; depletion.

DOI: 10.1504/IJMOR.2018.092968

International Journal of Mathematics in Operational Research, 2018 Vol.13 No.1, pp.128 - 139

Received: 15 Dec 2015
Accepted: 16 Dec 2016
Published online: 04 Jul 2018 *

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