PRODUCTION INVENTORY MODELS FOR DETERIORATIVE ITEMS WITH CONTINUOUS COMPOUND DEMAND AND GROWTH OF DEMAND

Abstract

A Production Inventory model is an inventory control model that determines the amount of product to be produced on a
single facility so as to meet a deterministic demand over an infinite planning horizon. In all inventory models a general
assumption is that products generated have indefinitely long lives. In general, almost all items deteriorate over time. In
production inventory model, the demand rate is constant and it does not change over the period. But in real life, the demand
rate is fluctuating over the period. At the end of the particular period, the demand rate will get changed. So, the continuous
compound demand rate is analyzed in the model 1 and integrated continuous compound demand with growth of demand is
introduced in the model 2. To our knowledge, no researchers have considered both time dependent demands in a single
model. The rate of Growth in the production period is and in the consumption period is . This research considers inventory systems for production inventory models where the objective is to find the optimal cycle time, which minimize the total cost and optimal amount of shortage if it is allowed. The relevant model is built, solved and closed formulas are obtained. Necessary and sufficient conditions are derived. An illustrative example is provided and numerically verified. The validation of result in this model was coded in Microsoft Visual Basic 6.0