Title: Optimal strategy for an inventory model based on agile manufacturing under imperfect production process

Authors: Himani Dem; S.R. Singh; Leena Parasher

Addresses: Department of Applied Sciences, SRM Institute of Science and Technology, NCR Campus, Ghaziabad, Uttar Pradesh 201204, India ' Department of Mathematics, Chaudhary Charan Singh University, Meerut, Uttar Pradesh 250004, India ' Centre for Mathematical Sciences, Banasthali University, Banasthali, Rajasthan 304022, India

Abstract: This paper presents a production inventory model over infinite planning horizon with manufacturing process producing both perfect as well as imperfect items. Demand is stock dependent for perfect quality items and for imperfect items it depends on the reduction rate of selling price and the amount of imperfect production. The production rate is a function of demand. Reliability of the manufacturing system is assumed to be exponentially decreasing function of time. The objective is to determine the optimal policy for production system which maximises the total profit subject to some constraints under consideration. The results are discussed with a numerical example to illustrate the theory. The effects of important parameters on decision policy are also analysed through sensitivity analysis.

Keywords: imperfect production; agile/volume flexible manufacturing system; stock dependent demand; reduction rate.

DOI: 10.1504/IJMOR.2019.096981

International Journal of Mathematics in Operational Research, 2019 Vol.14 No.1, pp.106 - 122

Received: 18 Jan 2017
Accepted: 13 Jul 2017
Published online: 14 Dec 2018 *

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