An optimal production-inventory model for deteriorating items with multiple-market demand

Yong He, Shou-Yang Wang and K.K. Lai

European Journal of Operational Research, 2010, vol. 203, issue 3, 593-600

Abstract: The global markets of today offer more selling opportunities to the deteriorating items' manufacturers, but also pose new challenges in production and inventory planning. From a production management standpoint, opportunities to exploit the difference in the timing of the selling season between geographically dispersed markets for deteriorating items are important to improving a firm's profitability. In this paper, we examined the above issue with an insightful production-inventory model of a deteriorating items manufacturer selling goods to multiple-markets with different selling seasons. We also provided a solution procedure to find the optimal replenishment schedule for raw materials and the optimal production plan for finished products. A numerical example was then used to illustrate the model and the solution procedure. Finally, sensitivity analysis of the optimal solution with respect to major parameters was carried out.

Keywords: Supply; chain; management; Deteriorating; items; Multiple-market; Inventory; management (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:203:y:2010:i:3:p:593-600

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