ON OPTIMAL OPERATING POLICIES OF EPQ MODEL WITH TIME-DEPENDENT REPLENISHMENT AND DETERIORATION HAVING SELLING PRICE DEPENDENT DEMAND
Abstract: EPQ Models are more important for scheduling the production processes and manufacturing units. In this paper, we study an Economic Production Quantity Model with the assumption that the replenishment is time-dependent. It is further assumed that the rate of deterioration is also linearly dependent on time. Using differential equations the instantaneous state of inventory is derived. With suitable cost considerations, the total cost function and profit rate function is obtained. By maximizing the profit rate function the optimal policies are derived. Through numerical illustrations, the solution procedure of the model is demonstrated. The sensitivity analysis of the model reveals that the replenishment parameters and deterioration parameters have a significant influence on the operating policies.
Keywords: EPQ Model, Time-Dependent Deterioration, Selling Price Deterioration, Time-Dependent Replenishment.
How to cite this article:
K.SRINIVAS RAO and S.ACHYUTA, ON OPTIMAL OPERATING POLICIES OF EPQ MODEL WITH TIME-DEPENDENT REPLENISHMENT AND DETERIORATION HAVING SELLING PRICE DEPENDENT DEMAND, INTERNATIONAL JOURNAL OF ADVANCES IN MATHEMATICS, VOLUME 2019, NUMBER 5, PAGES 35-56, 2019.