Production inventory system for deteriorating items with trapezoidal type demand

Abstract

For the items like trendy goods, mobile phones and such others, it is examined that the demand rate is of trapezoidal type. The aim of this study is to present optimal production policy for deteriorating items, when the demand of an item is trapezoidal type. Rate of deterioration is assumed to be constant and rate of production depends upon demand rate. Shortages are not allowed. Mathematical formulation is derived in order to minimize the total cost of an inventory system. An easy to use algorithm is presented to decide an optimal production policy.