An economic production quantity (EPQ) model for a deteriorating item with partial trade credit policy for price dependent demand under inflation and reliability
It is well-known that the production-inventory problem for deteriorating items in the supply chain is a challenge when deciding on how many products to manufacture to obtain a maximum total profit. This research work develops an economic production quantity model for a deteriorating item under parti...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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University of Belgrade
2021-01-01
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| Series: | Yugoslav Journal of Operations Research |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/0354-0243/2021/0354-02432000036A.pdf |
| Summary: | It is well-known that the production-inventory problem for deteriorating items in the supply chain is a challenge when deciding on how many products to manufacture to obtain a maximum total profit. This research work develops an economic production quantity model for a deteriorating item under partial trade credit policy considering inflation, the effect of reliability factor of a production system, and the demand depending on the price of a product whose selling price is optimized. The production inventory model is formulated as a nonlinearly constrained optimization problem by analyzing different cases. Finally, through a numerical example, a sensitivity analysis is performed to study the effect of different parameters, changing one parameter at a time and keeping others fixed at their original values. |
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| ISSN: | 0354-0243 1820-743X |