An Economic Inventory Model Comparing Stock Dependent and Fixed Demand for Random Machine Breakdown, Repair Time and Deterioration

Abstract

In this article, effect of random machine breakdown along with random repair time for a manufacture unit exposed to exponentially decreasing rate due to machine breakdown. Production is taken as directly proportional to demand and greater than demand. The model is proposed for demand as stock dependent and also for fixed demand. The unit is also producing deteriorating items. Comparison of expected lost sale cost has been made by considering demand as stock dependent and then as fixed. Using uniform probability density function expected manufacturing time is estimated. The work is done to compare both the demands and then come to a decision for the manufacture system to optimize the expected overall cost with respect to time, subjected to random machine breakdown. To summarize the model a numerical example is also discussed.