A variable production scheduling policy for deteriorating items with time-varying demand

In this study, an economic production scheduling policy which allows for variations in production quantity, scheduling time and shortages is developed. Computational results using the model are compared with the results from existing studies. We show that the model developed is more cost-effective than several related models in the area. A sensitivity analysis has been conducted to shed light on the impact of changing model parameters on the chosen measure of performance. Scope and purpose A production-inventory system with time-varying demand and shortages is presented for inventory deteriorating at a constant rate. The deteriorating items have a finite production rate and a known planning horizon. The purpose of this study is to develop an economic production policy where the production cycle as well as the production quantity may vary from period to period. A heuristic approach for solving the problem is developed.

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