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

  • S. Panda


  • S. Saha


  • M. Basu


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    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

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    Article provided by Springer in its journal Central European Journal of Operations Research.

    Volume (Year): 17 (2009)
    Issue (Month): 4 (December)
    Pages: 381-396

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    Handle: RePEc:spr:cejnor:v:17:y:2009:i:4:p:381-396
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    1. 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.
    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.
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