On the global optimal solution to an integrated inventory system with general time varying demand, production and deterioration rates

In this paper a unified inventory model for integrated production system with a single product is presented. The production, demand and deterioration rates for the finished product and the deterioration rates for raw materials are assumed to be functions of time. A rigorous mathematical proof which shows the global optimality of the solution to the considered inventory system is introduced. A numerical example that illustrates the solution procedure is included.