Article ID: | iaor20052034 |
Country: | Netherlands |
Volume: | 157 |
Issue: | 2 |
Start Page Number: | 357 |
End Page Number: | 371 |
Publication Date: | Sep 2004 |
Journal: | European Journal of Operational Research |
Authors: | Goyal S.K., Chaudhuri K.S., Sana S. |
Keywords: | deteriorating items |
A production–inventory model is developed for a deteriorating item over a finite planning horizon with a linear time-varying demand, finite production rate and shortages. The resulting nonlinear constrained minimization problem is numerically solved by using the box complex algorithm. The optimal number of production cycles that minimizes the average system cost is determined. Sensitivity analysis of the optimal solution is carried out.