An Inflation Effect on Deteriorating Production Inventory Model with Price and Stock Dependent Demand

Abstract

This paper presents two production inventory models for deteriorating items with price and stock-dependent demand that take inflation into account. We formulated the corresponding problem as a nonlinearly constrained optimization problem and solved it using the Generalized Reduced Gradient Method. A set of numerical examples have been considered to illustrate the models, and the significant features of the results are discussed. On the basis of these examples, we have compared the two models. Sensitivity analyses have been conducted taking one parameter at a time while keeping the other parameters the same.