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An EPQ Model for Delayed Deteriorating Items with Two-Phase Production Period, Exponential Demand Rate and Linear Holding Cost

An EPQ Model for Delayed Deteriorating Items with Two-Phase Production Period, Exponential Demand... The economic production quantity (EPQ) model for delayed deteriorating items considering two-phase production periods, exponential demand rate and linearly increasing function of time holding cost is proposed to solve a production problem similar to the one caused by the Covid-19 pandemic. Without shortages, the necessary and sufficient conditions for optimality of this model are characterized through a theorem and lemmas while a solution methodology based on differential calculus is adopted. This paper determines the best replenishment cycle length corresponding to the optimal total variable cost and production quantity of imperfect production industry. To illustrate this model, a numerical experiment is conducted. The results demonstrate that a higher carrying charge decreases the production quantity and a longer demanding period decreases the total variable cost of an industry with a distracted production period. Finally, managerial insights are discussed using sensitivity analysis and future research directions are exposed. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Bulletin of the Malaysian Mathematical Sciences Society Springer Journals

An EPQ Model for Delayed Deteriorating Items with Two-Phase Production Period, Exponential Demand Rate and Linear Holding Cost

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References (90)

Publisher
Springer Journals
Copyright
Copyright © The Author(s), under exclusive licence to Malaysian Mathematical Sciences Society and Penerbit Universiti Sains Malaysia 2022
ISSN
0126-6705
eISSN
2180-4206
DOI
10.1007/s40840-022-01316-x
Publisher site
See Article on Publisher Site

Abstract

The economic production quantity (EPQ) model for delayed deteriorating items considering two-phase production periods, exponential demand rate and linearly increasing function of time holding cost is proposed to solve a production problem similar to the one caused by the Covid-19 pandemic. Without shortages, the necessary and sufficient conditions for optimality of this model are characterized through a theorem and lemmas while a solution methodology based on differential calculus is adopted. This paper determines the best replenishment cycle length corresponding to the optimal total variable cost and production quantity of imperfect production industry. To illustrate this model, a numerical experiment is conducted. The results demonstrate that a higher carrying charge decreases the production quantity and a longer demanding period decreases the total variable cost of an industry with a distracted production period. Finally, managerial insights are discussed using sensitivity analysis and future research directions are exposed.

Journal

Bulletin of the Malaysian Mathematical Sciences Society – Springer Journals

Published: Sep 1, 2022

Keywords: EPQ; Cycle length; Exponential demand; Holding cost; Delayed deterioration; 90B30; 90B05

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