Designing and computing optimal policies on a production model for non-instantaneous deteriorating items with shortages

Abstract

This paper discusses a production model for non-instantaneous Weibull deteriorating items with complete backlogging over an infinite time horizon and also extended to the finite time horizon. The model is studied under the production policy starting with shortages. The objective of this model is to minimise the total cost to the manufacturer which is the sum of the setup cost, production cost, holding cost and shortage cost. Finally, numerical examples are given to illustrate the real-life applications of the proposed model. Sensitivity analyses of the major inventory parameters are carried out. Some useful managerial applications are obtained by using sensitivity analysis.

Keywords:

• production
• optimisation
• optimal policies
• shortages
• complete backlogging
• demand
• time-dependent demand
• non-instantaneous deterioration

Acknowledgement

The authors gratefully acknowledge all suggestions by the editor and the referees for improving the paper.