A production lot size model for deteriorating items with inventory level dependent production and demand rate

Abstract In this paper, a production lot size inventory model for deteriorating items with inventory-level dependent production and demand rate is developed. The production rate and demand both are dependent on the instantaneously level, and an alternative optimization technique is presented to derive an optimal production policy. The method is illustrated by a numerical example and a sensitivity analysis of the optimal solution with respect to parameters of the system is also carried out.