An Inventory Production Model with Time-Dependent Production Rate, Deterioration Rate and Demand Rate without Shortage
Shyam Sundar Sahoo
*
Department of Statistics, Ravenshaw University, Cuttack, Odisha, India.
Sudhir Kumar Sahu
Department of Statistics, Ravenshaw University, Cuttack, Odisha, India.
Janardan Behera
Department of Statistics, Ravenshaw University, Cuttack, Odisha, India.
Bidyadhara Bishi
Department of Statistics, Central University of Odisha, Koraput, India.
*Author to whom correspondence should be addressed.
Abstract
This research article presents an inventory production model incorporating time-dependent production rate, deterioration rate and demand rate, specifically tailored for industries like sugar manufacturing. The model assumes a deterministic framework without shortages, making it highly relevant for perishable goods industries where maintaining continuous supply is crucial. The primary objective is to derive an optimal production strategy considering the dynamic nature of these factors. The mathematical formulation is developed using differential equations to model inventory behavior over time. A numerical example is provided to illustrate the model’s practical applicability, followed by a sensitivity analysis highlighting the collision of parameter variations. The findings suggest managerial insights for optimizing inventory levels, minimizing wastage, and ensuring a smooth production flow.
Keywords: Inventory production model, time-dependent production rate, deterioration rate, demand rate, perishable goods, continuous inventory management, sensitivity analysis