In this paper, an economic production scheduling policy for deteriorating items with shortages and variable production schedule time is developed. The items are deteriorating at a constant rate, the production rate and the demand rate is considered as functions of time (time varying). The proposed model facilitates managers in determining the optimal number of production cycles and optimal replenishment schedule over a finite planning horizon in order to keep the total relevant cost as low as possible. The method is illustrated by a numerical example and a sensitivity analysis of the optimal solution with respect to parameters of the system is also carried out.
Relation:
Journal of Interdisciplinary Mathematics 3(1), pp.93-107
