A production inventory model for ameliorating and deteriorating items with two levels of production under time dependent quadratic demand and preservation technology investment

Abstract

A production inventory model for ameliorating and deteriorating items is established with time varying quadratic demand under the influence of preservation technology. Two different production rates are considered such that the initial production rate switches to another rate of production after some interval of time. Preservation technology is used to lower the deterioration effect. The main objective is to obtain the optimal production time, cycle length and preservation technology cost to minimize the total cost per unit time of the system. Numerical examples under different situations are presented to illustrate the model. The effect of the parameters on optimal solution is investigated through sensitivity analysis while various observation obtained are discussed accordingly.

Keywords

• production inventory model
• amelioration
• deterioration
• preservation technology investment
• time dependent quadratic demand
• two level production rates