An Economic Production Quantity (EPQ) Model for Delayed Deteriorating Items with Stock-Dependent Demand Rate and Linear Time Dependent Holding Cost

Abstract

In this paper, an economic production quantity (EPQ) model is presented for a single product with delayed deterioration in which the production rate is constant, demand rate is inventory level dependent in a linear functional form before and after production and the holding cost is a linear function of time. The main objective is to determine the optimal replenishment cycle time such that the total variable cost is minimised. Numerical examples are provided to illustrate the theoretical results.

Keywords: Inventory-production model, delayed deterioration, linear variable holding cost

Journal of the Nigerian Association of Mathematical Physics, Volume 19 (November, 2011), pp 123 – 130