Production Inventory Models for Deteriorating Items with Stochastic Machine Unavailability Time, Lost Sales and Price-Dependent Demand
Abstract: The economic
production quantity (EPQ) model is widely employed in reality and is also being
intensively developed in the research area. This research tries to develop more
realistic EPQ models for deteriorating items by considering stochastic machine
unavailability time (uniformly and exponentially distributed) and
price-dependent demand. Lost sales will occur
when machine unavailability time is longer than the non production time. Since
the closed form solution cannot be derived, we use Genetic Algorithm (GA) to
solve the models. A numerical example and sensitivity analysis is shown to
illustrate the models. The sensitivity analyses show that a management can use
price policy to minimize the profit loss due to machine unavailability time
under a price- dependent demand situation.
Author: Gede Agus Widyadana,
Hui Ming Wee
Journal Code: jptindustrigg100008
