Imperfect production inventory model for time and effort dependent demand under inflation and maximum reliability

ABSTRACT

This paper analyses an economic production quantity (EPQ) model with time and advertisement sensitive demand with the effect of inflation when defective items are produced. In every manufacturing sector, some problems (like labor problems , machine breakdown, etc.) may arise in production system in long run. Due to this, imperfect or defective items are produced. These defective items are reworked to get fresh items again. This rework process is done at some cost. To reduce this additional rework cost some improvement in product reliability is very much needed. Keeping these facts in mind we have incorporated reliability as decision variable in our model. The objective of the model is to maximise profit function with respect to reliability parameter. We have used Euler-Lagrange method to optimise profit function. The problem is validated by numerical example and effects of inventory parameters are studied by sensitivity analysis.

Keywords:

• Inventory model
• time and advertisement dependent demand
• inflation
• imperfect production
• reliability

Acknowledgments

The authors thank co-editor and reviewers for their constructive reviews. The authors thank DST-FIST for technical support with file # MSI-097.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Nita H. Shah

Nita H. Shah is a professor in the Department of Mathematics at Gujarat University, Ahmedabad, Gujarat, India. She received her Ph.D. in inventory control management, operations research. Currently, she is engaged in research in areas of inventory control and management, supply chain management, forecasting and information technology and information systems, neural networks, sensors and image processing. She has more than 350 papers published in international and national journals. She is the author of four books. She is serving as a member of the editorial board of Investigation Operational, Journal of Social Science and Management, International Journal of Industrial Engineering and Computations and Mathematics Today.

Chetansinh R. Vaghela

Chetansinh R. Vaghela is a research scholar in the Department of Mathematics at Gujarat University, Ahmedabad, Gujarat, India. His research interest is in modeling inventory problems.