A Deteriorating Inventory Model under Overtime Production and Credit Policy for Stock- and Price Sensitive Demand Function
DOI:
https://doi.org/10.31181/oresta210322106sKeywords:
Overtime production, Production period, Conservation investment time, Deterioration, Stock- and vending worth dependent time, SensitivityAbstract
This paper develops an overtime production model for demand rate to be a function of price and stock-level. Companies manufacturing rate fluctuates with the change in stock-level and demand rate. To control the deterioration up to some extent, the system introduces preservation technology investment. The article permits a two-level credit policy for flexible financing. The model calculates feasible profit value under preservation technology investment, production period and selling price. Conclusively, a sensitivity analysis related to different inventory parameters is performed to study the dependency of optimal values on parameters.
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