Economic Production Quantity Models with Shortage, Price and Stock-Dependent Demand for Deteriorating Items

Abstract

This investigation presents an economic production quantity (EPQ) model for deteriorating items with stock-dependent demand and shortages. It is assumed that a constant fraction of the on-hand inventory deteriorates and demand rate depends upon the amount of the stock level. Expression for various optimal indices as well as cost analysis are provided. By taking numerical illustration, sensitivity analysis has been carried out. For cost optimization, Newton’s method is employed.