A multi-item production lot size inventory model with cycle dependent parameters

Abstract

In this paper, a multi-item production inventory model is considered within a given time horizon that consists of different time periods. For each product, production, demand, and deterioration rates in each period are known. Shortage for each product is allowed but it is completely backlogged . The objective is to find the optimal production and restarting times for each product in each period so that the overall total inventory cost for all products is minimized. In this paper, a formulation of the problem is developed and optimization techniques are performed to show uniqueness and global optimality of the solution.

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