We have designed an inventory model for seasonal products in which deterioration can be controlled by item preservation technology investment. Demand for the product is considered price sensitive and decreases linearly. This study has shown that the profit is a concave function of optimal selling price, replenishment time and preservation cost parameter. We simultaneously determined the optimal selling price of the product, the replenishment cycle and the cost of item preservation technology. Additionally, this study has shown that there exists an optimal selling price and optimal preservation investment to maximize the profit for every business set-up. Finally, the model is illustrated by numerical examples and sensitive analysis of the optimal solution with respect to major parameters.
The disruption in a production system occurs due to labor problem, machines breakdown, strikes, political issue, and weather disturbance, etc. This leads to delay in the supply of the products, resulting customer to approach other dealers for the products. This paper is an attempt to develop an economic production quantity model using optimization method for deteriorating items with production disruption. We obtained optimal production time before and after the system gets disrupted. We have also devised the model for optimizing the shortage of the products. This research is useful to determine the time for start and stop of the production when system gets disrupted. The optimal production and inventory plan are provided, so that the manufacturer can reduce the loss occurred due to disruption. Finally a graph based simulation study has been given to illustrate the proposed model.
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