Production Inventory Model for Deteriorating Items with On-Hand Inventory and Time Dependent Demand

Production inventory model plays a dominant role in production scheduling and planning. For the determination of optimal downtime, uptime of production and production quantity, it is required to minimize the expected total cost. The total cost of production is dependent on demand, production rate and rate of decay in deteriorating items. In this paper, we develop and analyze the production inventory model for deteriorating items by assuming that the demand is a function of both on-hand inventory and time. It is also assumed that the lifetime of commodity is random and follows a Weibull distribution. The sensitivity of the model is analyzed with respect to the parameters and costs. A case study is carried out to determine production schedules in a pickle manufacturing industry. This model also includes other production-level inventory models as particular cases for specific values of the parameters.