Optimal batch production strategies under continuous price decrease and time discounting

Authors

  • S. Mandal Department of Mathematics, Jadavpur University, Kolkata, India
  • B.C. Giri Department of Mathematics, Jadavpur University, Kolkata, India
  • K.S. Chaudhuri Department of Mathematics, Jadavpur University, Kolkata, India

DOI:

https://doi.org/10.2298/YJOR0702165M

Keywords:

inventory, continuous price change, time value of money, shortage

Abstract

Single price discount in unit cost for bulk purchasing is quite common in reality as well as in inventory literature. However, in today's high-tech industries such as personal computers and mobile industries, continuous decrease in unit cost is a regular phenomenon. In the present paper, an attempt has been made to investigate the effects of continuous price decrease and time-value of money on optimal decisions for inventoried goods having time-dependent demand and production rates. The proposed models are developed over a finite time horizon considering both shortages and without shortages in inventory. Numerical examples are taken to illustrate the developed models and to examine the sensitivity of model parameters.

References

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Published

2007-09-01

Issue

Vol. 17 No. 2 (2007)

Section

Research Articles

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