An EPQ Model for Delayed Deteriorating Items with Two-Phase Production Period, Variable Demand Rate and Linear Holding Cost

Malumfashi, Mustapha Lawal; Ismail, Mohd Tahir; Bature, Babangida; Dari, Sani; Ali, Majid Khan Majahar

doi:10.1007/978-981-16-2629-6_19

Cited by 4 publications

(3 citation statements)

References 20 publications

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“…Though the total variable cost obtained in [ 50 ] is minimum, it is less realistic to produce 8115.56 units in a cycle length closer to one and half years if compared to the quantity of 83,995.12 units determined by the proposed model in a cycle of less than 1 year . Assuming the cycle length of the proposed model is approaching that determined in [ 50 ], taking into account that, the demanding nature of the proposed model is an exponentially increasing function of time, then the total variable cost should have also been minimized. As such, the proposed model is an improved one here.…”

Section: Numerical Experimentsmentioning

confidence: 99%

“…For local products with less life span, the production rate has to be reduced to avoid losses while for globally use with longer life span products and some items that their demand is at an exponential rate (such as past-food wrapping materials, facemasks, hand wash sanitizer and so on), the production rate needs to be accelerated before these measures are imposed to avoid shortages. The production rate of this kind is conditional and little work is found where it is considered in the study of inventory systems, where it exists [ 49 , 50 ], the change in production is not instantaneous and the demand rate is not exponential. As such, this research tries to solve the production problem caused by the instantaneous sudden change in production rate by providing an EPQ model for non-instantaneous deteriorating items with conditional production rate, exponential demand rate and linearly time-dependent holding cost (Table 1 ).…”

Section: Introductionmentioning

confidence: 99%

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An EPQ Model for Delayed Deteriorating Items with Two-Phase Production Period, Exponential Demand Rate and Linear Holding Cost

Malumfashi

Ismail

Ali

2022

Bull. Malays. Math. Sci. Soc.

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The economic production quantity (EPQ) model for delayed deteriorating items considering two-phase production periods, exponential demand rate and linearly increasing function of time holding cost is proposed to solve a production problem similar to the one caused by the Covid-19 pandemic. Without shortages, the necessary and sufficient conditions for optimality of this model are characterized through a theorem and lemmas while a solution methodology based on differential calculus is adopted. This paper determines the best replenishment cycle length corresponding to the optimal total variable cost and production quantity of imperfect production industry. To illustrate this model, a numerical experiment is conducted. The results demonstrate that a higher carrying charge decreases the production quantity and a longer demanding period decreases the total variable cost of an industry with a distracted production period. Finally, managerial insights are discussed using sensitivity analysis and future research directions are exposed.

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Section: Numerical Experimentsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

An EPQ Model for Delayed Deteriorating Items with Two-Phase Production Period, Exponential Demand Rate and Linear Holding Cost

Malumfashi

Ismail

Ali

2022

Bull. Malays. Math. Sci. Soc.

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“…They found that models with time-varying holding costs tend to have higher total variable costs compared to those with constant holding costs. Malumfashi et al (2021) devised an EOQ-like model, known as the Economic Production Quantity (EPQ), for delayed deteriorating items. This model considers a two-phase production period, a variable demand rate, and linearly increasing time-dependent holding costs.…”

Section: Introductionmentioning

confidence: 99%

An Order Quantity Model for Delayed Deteriorating Items with Time-varying Demand Rate and Holding Cost, Complete Backlogging Rate and Two-level Pricing Strategies under Trade Credit Policy

Madugu,

Bature,

Idris

et al. 2023

USci

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In some classical inventory models for non-instantaneous deteriorating items, it is tacitly assumed that the selling price before and after deterioration sets in is the same. However, in real practice, when deterioration sets in, the retailer may decide to reduce the selling price to encourage more sales, reduce the cost of holding stock, attract new customers and reduce losses due to deterioration. This research developed an economic order quantity model for non-instantaneous deteriorating items with two-phase demand rates, linear holding cost, complete backlogging rate and two-level pricing strategies under trade credit policy. It is assumed that the holding cost is linear time-dependent, the unit selling price before deterioration sets in is greater than that after deterioration sets and the demand rate before deterioration sets in is considered as continuous time-dependent quadratic, after which it is considered as constant up to when the inventory is completely exhausted. Shortages are allowed and completely backlogged. The proposed model determines the optimal time with positive inventory, cycle length and order quantity such that the total profit of the inventory system has a maximum value. The necessary and sufficient conditions for the existence and uniqueness of optimal solutions have been established. Numerical experiments have been conducted to illustrate the theoretical result of the model. Sensitivity analysis of some model parameters on the decision variables has been carried out, and suggestions towards maximising the total profit were also given.

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Editorial Notes

Mohd

Misro

Ahmad

et al. 2021

Springer Proceedings in Mathematics &Amp; Statistics

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An EPQ Model for Delayed Deteriorating Items with Two-Phase Production Period, Variable Demand Rate and Linear Holding Cost

Cited by 4 publications

References 20 publications

An EPQ Model for Delayed Deteriorating Items with Two-Phase Production Period, Exponential Demand Rate and Linear Holding Cost

An EPQ Model for Delayed Deteriorating Items with Two-Phase Production Period, Exponential Demand Rate and Linear Holding Cost

An Order Quantity Model for Delayed Deteriorating Items with Time-varying Demand Rate and Holding Cost, Complete Backlogging Rate and Two-level Pricing Strategies under Trade Credit Policy

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