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An optimal production-inventory model for deteriorating items with multiple-market demand

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  • He, Yong
  • Wang, Shou-Yang
  • Lai, K.K.

Abstract

The global markets of today offer more selling opportunities to the deteriorating items' manufacturers, but also pose new challenges in production and inventory planning. From a production management standpoint, opportunities to exploit the difference in the timing of the selling season between geographically dispersed markets for deteriorating items are important to improving a firm's profitability. In this paper, we examined the above issue with an insightful production-inventory model of a deteriorating items manufacturer selling goods to multiple-markets with different selling seasons. We also provided a solution procedure to find the optimal replenishment schedule for raw materials and the optimal production plan for finished products. A numerical example was then used to illustrate the model and the solution procedure. Finally, sensitivity analysis of the optimal solution with respect to major parameters was carried out.

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  • He, Yong & Wang, Shou-Yang & Lai, K.K., 2010. "An optimal production-inventory model for deteriorating items with multiple-market demand," European Journal of Operational Research, Elsevier, vol. 203(3), pages 593-600, June.
    • Handle: RePEc:eee:ejores:v:203:y:2010:i:3:p:593-600
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    Cited by:

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    5. Pal, Brojeswar & Sana, Shib Sankar & Chaudhuri, Kripasindhu, 2012. "A multi-echelon supply chain model for reworkable items in multiple-markets with supply disruption," Economic Modelling, Elsevier, vol. 29(5), pages 1891-1898.
    6. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    7. Dharamender Singh & Anurag Jayswal & Majed G. Alharbi & Ali Akbar Shaikh, 2021. "An Investigation of a Supply Chain Model for Co-Ordination of Finished Products and Raw Materials in a Production System under Different Situations," Sustainability, MDPI, vol. 13(22), pages 1-25, November.
    8. Ali Salmasnia & Ali Talesh-Kazemi, 2022. "Integrating inventory planning, pricing and maintenance for perishable products in a two-component parallel manufacturing system with common cause failures," Operational Research, Springer, vol. 22(2), pages 1235-1265, April.
    9. Xiao, Tiaojun & Xu, Tiantian, 2013. "Coordinating price and service level decisions for a supply chain with deteriorating item under vendor managed inventory," International Journal of Production Economics, Elsevier, vol. 145(2), pages 743-752.
    10. Huang, Yeu-Shiang & Su, Wei-Jun & Lin, Zu-Liang, 2011. "A study on lead-time discount coordination for deteriorating products," European Journal of Operational Research, Elsevier, vol. 215(2), pages 358-366, December.
    11. Pahl, Julia & Voß, Stefan, 2014. "Integrating deterioration and lifetime constraints in production and supply chain planning: A survey," European Journal of Operational Research, Elsevier, vol. 238(3), pages 654-674.
    12. Chung, Chun-Jen & Wee, Hui-Ming, 2011. "Short life-cycle deteriorating product remanufacturing in a green supply chain inventory control system," International Journal of Production Economics, Elsevier, vol. 129(1), pages 195-203, January.
    13. K. Skouri & I. Konstantaras & S. Manna & K. Chaudhuri, 2011. "Inventory models with ramp type demand rate, time dependent deterioration rate, unit production cost and shortages," Annals of Operations Research, Springer, vol. 191(1), pages 73-95, November.
    14. Majumder, P. & Bera, U.K. & Maiti, M., 2016. "An EPQ model for two-warehouse in unremitting release pattern with two-level trade credit period concerning both supplier and retailer," Applied Mathematics and Computation, Elsevier, vol. 274(C), pages 430-458.
    15. Manish Shukla & Sanjay Jharkharia, 2014. "An inventory model for continuously deteriorating agri-fresh produce: an artificial immune system-based solution approach," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 9(1/2), pages 110-135.
    16. Ali Salmasnia & Ali Talesh-Kazemi & Mohammad Reza Maleki, 2022. "Joint optimization of inventory planning, maintenance policy and pricing for perishable complementary products by considering the product freshness and technology level," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(4), pages 713-746, December.

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