An Interdisciplinary Journal

2004, Vol.7, No.1, pp.61-68

On a Volume Flexible Production Policy for a Deteriorating item with Stock-Dependent Demand Rate
S. Sana and K. S. Chaudhuri

The paper extends the Classical Economic Lot Scheduling Problem (ELSP) to the case of a volume flexible manufacturing system in which the production rate constitutes Regulartime Product and Overtime Product. It is also assumed that (i) the demand rate is stock-dependent and (ii) the stock undergoes decay or deterioration over time at a constant rate. The associated constrained Maximization Problem is solved numerically by using the Interior Penalty Function Method for a given set of parameter values to obtain the near-optimal solution.
Key words: volume flexible manufacturing system, deteriorating item, regulartime product, overtime product, stock-dependent demand rate, constrained optimization

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