An optimal production-inventory model for deteriorating items with multiple-market demand
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.
Year of publication: |
2010
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Authors: | He, Yong ; Wang, Shou-Yang ; Lai, K.K. |
Published in: |
European Journal of Operational Research. - Elsevier, ISSN 0377-2217. - Vol. 203.2010, 3, p. 593-600
|
Publisher: |
Elsevier |
Keywords: | Supply chain management Deteriorating items Multiple-market Inventory management |
Saved in:
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