EPL models for complementary and substitute items under imperfect production process with promotional cost and selling price dependent demands

Manoranjan De (), Barun Das () and Manoranjan Maiti ()
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Manoranjan De: Vidyasagar University
Barun Das: Sidho-Kanho-Birsha University
Manoranjan Maiti: Vidyasagar University

OPSEARCH, 2016, vol. 53, issue 2, No 3, 259-277

Abstract: Abstract This paper considers a multi-item, imperfect economic production lot-size (EPL) model with advertisement/promotional cost and selling price dependent demand and partially rework under a budget constraint. The items are either complementary or substitute to each other. In the EPL models, defective production commences from the out-of-control state, after the passage of some time from production commencement. Its occurrence is random after the lapse of certain time and it is imposed here through a chance constraint. The set-up cost is partly production dependent. Unit production cost is also production dependent and a part of it is taken as environment protection cost. Defective rate is also assumed to be random and production dependent. The model is formulated as an average profit maximization problem subject to chance constraints and a budget constraint and solved using the generalized reduced gradient method (GRG). Several special cases are derived and numerical experiments are performed to illustrate the general and particular models. Some sensitivity analyses are presented against few model parameters.

Keywords: Imperfect production; Random defective rate; Chance constraints; Complementary or substitute items; Environment protection cost (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s12597-015-0233-6

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