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Optimal production stopping time for perishable products with ramp-type quadratic demand dependent production and setup cost

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  • S. Panda
  • S. Saha
  • M. Basu

Abstract

A single item economic production quantity (EPQ) model is discussed to analyse the behaviour of the inventory level after it’s introduction to the market. It is assumed that demand is time dependent accelerated growth-effect of accelerated growth-steady type. Unlike the conventional EPQ models, which are restricted to general production cycle over the finite or infinite time horizon, we consider the production sale scenario of the very first production cycle for newly introduced perishable product. Shortage is not allowed. Set up cost of an order cycle depends on the total amount of inventory produced. The finite production rate is proportional to demand rate. Optimal production stopping time is determined to maximize total unit profit of the system. A numerical example is presented to illustrate the development of the model. Sensitivity analysis of the model is carried out. Copyright Springer-Verlag 2009

Suggested Citation

  • S. Panda & S. Saha & M. Basu, 2009. "Optimal production stopping time for perishable products with ramp-type quadratic demand dependent production and setup cost," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 17(4), pages 381-396, December.
    • Handle: RePEc:spr:cejnor:v:17:y:2009:i:4:p:381-396
    DOI: 10.1007/s10100-009-0098-y
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    References listed on IDEAS

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    1. Steven Nahmias, 1982. "Perishable Inventory Theory: A Review," Operations Research, INFORMS, vol. 30(4), pages 680-708, August.
    2. Goyal, S. K. & Giri, B. C., 2001. "Recent trends in modeling of deteriorating inventory," European Journal of Operational Research, Elsevier, vol. 134(1), pages 1-16, October.
    3. Manna, S.K. & Chaudhuri, K.S., 2006. "An EOQ model with ramp type demand rate, time dependent deterioration rate, unit production cost and shortages," European Journal of Operational Research, Elsevier, vol. 171(2), pages 557-566, June.
    4. S. Panda & S. Saha & M. Basu, 2007. "An Eoq Model With Generalized Ramp-Type Demand And Weibull Distribution Deterioration," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 93-109.
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    Cited by:

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