PRODUCTION INVENTORY MODELS WITH INTEGRATED STOCK AND PRICE DEPENDENT DEMANDS FOR DETERIORATIVE ITEMS

Abstract

This research takes into account production inventory models with price-dependent are developed: The first model uses integrated stock and price dependent demands, the second model uses stock dependent demand, and the third model uses price dependent demand. The models are built on the basis of a bipartition of the production cycle which in turn results in the holding cost. It was found that the holding cost is lower in integrated stock and price dependent demand compared to that of stock dependent demand and price dependent demand individually. Detailed mathematical models are presented for each model, as well as applicable illustrations are given for making the suggested technique clearer. In this scenario, the goal is to determine the order amounts and order intervals that will result in the lowest total cost. Each of the three models has its own individual sensitivity analysis offered. Visual Basic 6.0 was used in order to produce the required data.