A New Production-Inventory Planning Model for Joint Growing and Deteriorating Items

Abstract

The production-inventory models are traditionally adopted for manufacturing systems. A relatively new area of production-inventory planning is related to livestock growing process. This research aims to propose a class of production-inventory model for new items titled growing items. In such a case, a rancher orders a quantity of newborn livestock like chicks or lambs, grow them to an appropriate weight during the growing period, slaughter them and then sells them to the meat market. The goal is to calculate the economic order quantity of the growing items at the start of a growing cycle, the optimal length of the growing cycle and the optimal total profit. We, in this research, extend the previous work to the case of joint growing and deteriorating items, where livestock grows at growing period, and, additionally, the slaughtered livestock may be deteriorated during the sales period. Moreover, since some amount of slaughtered livestock is waste and should be disposed, a weight reduction factor is considered when livestock is slaughtered. The inventory models are constructed for this case, a heuristic solution algorithm is presented, a numerical example is discussed, and finally, sensitivity analysis is carried out to investigate the applicability of the problem.