ECONOMIC ORDER QUANTITY MODEL WITH PRODUCTION PLAN FOR SEQUENTIALLY CONVERTIBLE ITEM

Abstract

An economic quantity and production plan is developed for sequentially convertible items for deteriorating items. The initial form of an item sequentially converts into another form and different nature of items. In this process conversion cost and times need to convert the item. We have considered that demand of an item is different for different converted items, also the deterioration rates are different. For example, milk is converted into curd, curd into butter and butter into ghee after different durations of time. Managerial insights are provided for convertible items. Conversion of items needs conversion cost and conversion time,