Optimization of imperfect economic manufacturing models with a power demand rate dependent production rate

Abstract

The constant demand rate is the most common assumption of the basic economic production quantity model, which is not very frequent in practice. In real world situations, demand usually varies with time. With regard to the widespread necessity of power demand pattern, demand is supposed to follow a power law. Another unrealistic assumption is perfect quality of all items. This paper presents a production system with defective items to determine the optimal replenishment quantity, cycle length and backordered size with a power demand rate dependent production rate. We assume that a manufacturer may be faced with three different cases regarding to the date that defective items are drawn from inventory. The setup , backordering, inspection, and production costs, as well as holding cost of both perfect and imperfect items are accounted in the inventory system. An algorithm is offered to optimize total inventory cost and then numerical analyses are presented to demonstrate the applicability of the proposed models. Finally, some sensitivity analyses and managerial insights are provided.

An inventory model under power pattern demand having trade credit facility and preservation technology investment with completely backlogged shortages

“…In particular, if χ(ζ) = χ 0 (i.e., deterioration rate is constant), then our proposed model reduces to the model developed by Adaraniwon and Omar [1]. Again, if χ(ζ) = 0 (i.e., neglecting deterioration), then our proposed model reduces to the model developed by Keshavarzfard et al [13] under certain weaker conditions.…”

“…Next, comparing some earlier models of Adaraniwon and Omar [1], Keshavarzfard et al [13], and Kumar et al [19] under the power pattern demand, our model successfully diminished the deterioration rate, resulting in maximized profit due to the careful investment in preservation technology and trade credit offer. Furthermore, under some special cases, our model can be reduced to some previous models.…”

Profit maximization in an inventory system with time-varying demand, partial backordering and discrete inventory cycle

“…That is, the demand rate along this basic period is λδ t τ δ−1 , with δ > 0 and 0 < t < τ. This demand pattern has been used by several authors in recent years (see, for example, Adaraniwon and Omar (2019), Keshavarzfard et al (2019a, b), Mishra et al (2012), San-José et al (2017, 2018a, 2019a, Sicilia et al (2012)).…”

An inventory model for multiple items assuming time-varying demands and limited storage

“…This demand rate is known as the power demand pattern. Several authors, such as Naddor [12], Rajeswari and Vanjikkodi [13], Mishra and Singh [11], San José et al [16,17], Keshavarzfard et al [8], and San José et al [19] have studied inventory systems considering this type of demand.…”

“…Several researchers have developed models for different inventory systems considering a power demand pattern during the inventory cycle. See, for example, Rajeswari and Vanjikkodi [13], Sicilia et al [21], Mishra and Singh [11], Sicilia et al [22,23], San José et al [16,17,18], Keshavarzfard et al [8], Adaraniwon and Omar [1] and San José et al [19]. In these papers, all the inventory systems refer to a single product.…”