A production inventory model for variable demand and production

This study presents a production inventory model for a variable market in which the production rate at any instant depends on the demand and the inventory level. Three market demand rates are addressed. The proposed model can assist managers in accurately determining the production type under the variform market demand. A simple algorithm to compute the optimal production scheduling period is developed. The algorithm is illustrated by considering a numerical example of this class. Finally, we also discuss the sensitivity of these solutions to changes in underlying parameter values.