A Continuous production control inventory model is developed for a deteriorating item having shortages and variable production cycle. It is assumed that the production rate is changed to another at a time when the inventory level reaches a prefixed level and continued until the inventory level reaches the level . The demand rate is assumed to be constant, and the production cycle T is taken as variable. The production is started again at a time when the shortage level reaches a prefixed quantity . For this model, the total cost per unit time as a function of , , S , and T is derived. The optimal decision rules for , , S , and T are computed. The sensitivity of the optimal solution towards changes in the values of different system parameters is also studied. Results are illustrated by numerical examples.
Bhowmick, J., & Samanta, G. P. (2011). A Deterministic Inventory Model of Deteriorating Items with Two Rates of Production, Shortages, and Variable Production Cycle. ISRN Applied Mathematics, 2011, 1–16. https://doi.org/10.5402/2011/657464