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A PRODUCTION INVENTORY MODEL FOR AN ITEM WITH THREE PARAMETER WEIBULL DETERIORATION AND PRICE DISCOUNT

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Pradhan L. M. , Tripathy C. K.

LogForum

2012

tom 8

nr 3

257-266

Background: Deterioration is a natural process for most of the items as such it cannot be ignored in study of inventory control and management. In recent years great deal of study is devoted in developing inventory models for deteriorating items considering various practical situations. Price discount for partially deteriorated items is considerably a new concept introduced in developing various models. Methods: This paper deals with the development of an inventory model for Weibull deteriorating items. Here production and demand rate are considered to be constant and the holding cost per unit is assumed to be constant with respect to time. Completely deteriorated units are discarded and partially deteriorated items are allowed to carry a discount. Shortages are not allowed. Results and conclusions: A Production Inventory model for an item with three parameter Weibull deterioration with price discount for partially deteriorated item have been proposed in this paper. Here the optimal cycle time for the model has been derived and the result is illustrated with the help of numerical example. Sensitivity analysis has been carried out to analyze the changes in the optimal solution with respect to the change in other parameters.