A deterministic inventory model for deteriorating items is considered. The rate of demand is variable and it is on-hand inventory dependent. Rate of replenishment is instantaneous. Shortages are not allowed. The average total profit is maximized to decide the time of production run. Hence the economic lot size is obtained. The result is illustrated by various numerical examples with sensitivity analysis.
Keywords: – Sensitivity, inventory model, on-hand inventory, infinite production rate.
Anil Kumar Sharma, Raish Muhammad