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An EPQ model with different demand and deterioration rate for two warehouses under shortage, learning and imperfect production

Author

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  • Surendra Vikram Singh Padiyar
  • Vandana Gupta
  • Shiv Raj Singh
  • Naveen Bhagat

Abstract

This paper presents a mathematical framework to obtain a production model for deteriorating items with learning effect in production cost. The study considers different demand rates and different deterioration rate. In this model, one is own warehouse (OW) and other one is rented warehouse (RW) with different demand rate is considered. Every producer wants to get maximum benefit in his business, and he want to vacate the RW very soon, due to which he has to pay the least rent, so demand rate for RW is strictly increasing function of time. On the contrary, he can use his OW in such a way that the producer gets benefit and can build the selling price of inventory according to his profit, so demand rate for OW is selling price dependent. These assumptions effects on demand therefore production rate is taken as demand dependent. Shortage is also considered. Numerical example and sensitivity analysis of some parameters provided to examine the impact on the optimal total cost of the system. [Received: 28 January 2022; Accepted: 23 August 2023]

Suggested Citation

  • Surendra Vikram Singh Padiyar & Vandana Gupta & Shiv Raj Singh & Naveen Bhagat, 2025. "An EPQ model with different demand and deterioration rate for two warehouses under shortage, learning and imperfect production," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 19(2), pages 109-127.
    • Handle: RePEc:ids:eujine:v:19:y:2025:i:2:p:109-127
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