An EPQ model with trapezoidal demand under volume flexibility

In this paper, we explored an economic production quantity model (EPQ) model for finite production rate and deteriorating items with time-dependent trapezoidal demand. The objective of the model under study is to determine the optimal production run-time as well as the number of production cycle in order to maximize the profit. Numerical example is also given to illustrate the model and sensitivity analyses regarding various parameters are performed to study their effects on the optimal policy

Dual Stage Trade Credit Policy for Integrated Inventory System

The present study considers an integrated production inventory system of a supplier and a retailer. The proposed model explores the vendor managed strategy with the dual stage trade credit also known as progressive payment scheme, lead time and shortages. A nonlinear problem is formulated for the purpose of total profit maximization and solved using conventional global optimization method for nonlinear problem. This article can provide the managerial outline for schematizing the production strategy according to the received orders in a joint business enterprise

Two Storage Production Model with Imperfect Quality for Decaying Items Under Preservation

AbstractIn this paper, an imperfect inventory model with two separate warehouses called owned warehouse/show-room (OW) and rented warehouse (RW) is developed. The proposed model of this paper also considers a realistic assumption regarding the storage capacity of the rented warehouse. Production of defective units is a natural phenomenon in a production process. Defective items should be treated as a result of imperfect quality production. Inflation is also considered in this model. A solution procedure is presented to determine an optimal replenishment cycle, production cost, inspection cost, damaged item cost and preservation technology cost such that the total cost per unit time is minimized. A numerical example and sensitivity analysis are presented to illustrate the model