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EPL models for complementary and substitute items under imperfect production process with promotional cost and selling price dependent demands

Author

Listed:
  • Manoranjan De

    (Vidyasagar University)

  • Barun Das

    (Sidho-Kanho-Birsha University)

  • Manoranjan Maiti

    (Vidyasagar University)

Abstract

This paper considers a multi-item, imperfect economic production lot-size (EPL) model with advertisement/promotional cost and selling price dependent demand and partially rework under a budget constraint. The items are either complementary or substitute to each other. In the EPL models, defective production commences from the out-of-control state, after the passage of some time from production commencement. Its occurrence is random after the lapse of certain time and it is imposed here through a chance constraint. The set-up cost is partly production dependent. Unit production cost is also production dependent and a part of it is taken as environment protection cost. Defective rate is also assumed to be random and production dependent. The model is formulated as an average profit maximization problem subject to chance constraints and a budget constraint and solved using the generalized reduced gradient method (GRG). Several special cases are derived and numerical experiments are performed to illustrate the general and particular models. Some sensitivity analyses are presented against few model parameters.

Suggested Citation

  • Manoranjan De & Barun Das & Manoranjan Maiti, 2016. "EPL models for complementary and substitute items under imperfect production process with promotional cost and selling price dependent demands," OPSEARCH, Springer;Operational Research Society of India, vol. 53(2), pages 259-277, June.
    • Handle: RePEc:spr:opsear:v:53:y:2016:i:2:d:10.1007_s12597-015-0233-6
    DOI: 10.1007/s12597-015-0233-6
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    Cited by:

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    2. P. Majumder & U. K. Bera & M. Maiti, 2020. "An EPQ model of substitutable products under trade credit policy with stock dependent and random substitution," OPSEARCH, Springer;Operational Research Society of India, vol. 57(4), pages 1205-1243, December.
    3. Harun Öztürk, 2019. "Modeling an inventory problem with random supply, inspection and machine breakdown," OPSEARCH, Springer;Operational Research Society of India, vol. 56(2), pages 497-527, June.

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