A Deteriorating Inventory Model under Overtime Production and Credit Policy for Stock- and Price Sensitive Demand Function
This paper develops an overtime production model for demand rate to be a function of price and stock-level. Companies manufacturing rate fluctuates with the change in stock-level and demand rate. To control the deterioration up to some extent, the system introduces preservation technology investmen...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Regional Association for Security and crisis management, Belgrade, Serbia
2022-03-01
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| Series: | Operational Research in Engineering Sciences: Theory and Applications |
| Subjects: | |
| Online Access: | https://oresta.rabek.org/index.php/oresta/article/view/194 |
| Summary: | This paper develops an overtime production model for demand rate to be a function of price and stock-level. Companies manufacturing rate fluctuates with the change in stock-level and demand rate. To control the deterioration up to some extent, the system introduces preservation technology investment. The article permits a two-level credit policy for flexible financing. The model calculates feasible profit value under preservation technology investment, production period and selling price. Conclusively, a sensitivity analysis related to different inventory parameters is performed to study the dependency of optimal values on parameters.
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| ISSN: | 2620-1607 2620-1747 |