Communications in Mathematical Finance

A Production Inventory Model Consisting Time Dependent Linear Demand and Constant Production Rate

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  • Abstract

    In this proposed model the products are considered to have finite life with a small amount of decay. The market demand is assumed to be linear and time dependent. It is also assumed that the production starts with zero inventories without any backlogs and the production rate is constant, stopping after inventories reach a desired highest level of inventories. Inventory depletes to zero level from where the production cycle starts. A numerical illustration for the proof of the proposed model has been shown. The objective of this model is to obtain the total optimum inventory cost.

    Mathematics Subject Classification: 90B05
    Keywords: Production inventory, Time dependent linear form, Decay and Constant production rate.