Production inventory model with disruption considering shortage and time proportional demand

• Main Authors: Khedlekar U.K., Namdeo A., Nigwal A.
• Format: Article
• Language: English
• Published: University of Belgrade 2018-01-01
• Series: Yugoslav Journal of Operations Research
• Subjects: inventory; disruption; deterioration; preservation cost; shortage
• Online Access: http://www.doiserbia.nb.rs/img/doi/0354-0243/2018/0354-02431700008K.pdf

The disruption in a production system occurs due to labor problem, machines breakdown, strikes, political issue, and weather disturbance, etc. This leads to delay in the supply of the products, resulting customer to approach other dealers for the products. This paper is an attempt to develop an economic production quantity model using optimization method for deteriorating items with production disruption. We obtained optimal production time before and after the system gets disrupted. We have also devised the model for optimizing the shortage of the products. This research is useful to determine the time for start and stop of the production when system gets disrupted. The optimal production and inventory plan are provided, so that the manufacturer can reduce the loss occurred due to disruption. Finally a graph based simulation study has been given to illustrate the proposed model.