A Deteriorating Inventory Model under Overtime Production and Credit Policy for Stock- and Price Sensitive Demand Function

  • Nita H. Shah Department of Mathematics, Gujarat University, Ahmedabad-380009, Gujarat, India
  • Kavita Rabari Department of Mathematics, Gujarat University, Ahmedabad-380009, Gujarat, India
  • Ekta Patel Department of Mathematics, Gujarat University, Ahmedabad-380009, Gujarat, India
Keywords: Overtime production, Production period, Conservation investment time, Deterioration, Stock- and vending worth dependent time, Sensitivity

Abstract

This paper develops an overtime production model for demand rate to be a function of price and stock-level. Companies manufacturing rate fluctuates with the change in stock-level and demand rate. To control the deterioration up to some extent, the system introduces preservation technology investment. The article permits a two-level credit policy for flexible financing. The model calculates feasible profit value under preservation technology investment, production period and selling price.  Conclusively, a sensitivity analysis related to different inventory parameters is performed to study the dependency of optimal values on parameters.

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Published
2022-03-21
How to Cite
Shah, N. H., Rabari, K., & Ekta Patel. (2022). A Deteriorating Inventory Model under Overtime Production and Credit Policy for Stock- and Price Sensitive Demand Function. Operational Research in Engineering Sciences: Theory and Applications. https://doi.org/10.31181/oresta210322106s
Section
Articles