A Deteriorating Inventory Model under Overtime Production and Credit Policy for Stock- and Price Sensitive Demand Function
Nita H. Shah,
Department of Mathematics, Gujarat University, Ahmedabad-380009, Gujarat, IndiaKavita Rabari,
Department of Mathematics, Gujarat University, Ahmedabad-380009, Gujarat, IndiaEkta Patel ,
Department of Mathematics, Gujarat University, Ahmedabad-380009, Gujarat, IndiaAbstract
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.
Keywords
Overtime production, Production period, Conservation investment time, Deterioration, Stock- and vending worth dependent time, Sensitivity.Browse Issue
CiteScore for Management Science and Operations Research
8.1
2021CiteScore
89th percentile
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CiteScore for Engineering (miscellaneous)
8.1
2021CiteScore
93rd percentile
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