In this paper, a production inventory model is considered for stochastic demand with the effect of inflation. Generally, every manufacturing system wants to produce perfect quality items. However, due to real-life problems (labor problems, machine breakdown, etc.), a certain percentage of products are of imperfect quality. The imperfect items are reworked at a cost. The lifetime of a defective item follows a Weibull distribution. Due to the production of imperfect quality items, a product shortage occurs. The profit function is derived by using both a general distribution of demand and the uniform rectangular distribution of demand. Computational experiments along with graphical illustrations are presented to discuss the optimality of the probability functions.
Bibliographical noteFunding Information:
The authors would like to express their gratitude to the referees for their encouragement and constructive comments in revising the paper. DR. Biswajit Sarkar is grateful to the University Grants Commission (Minor Research Project), India for their financial assistance and VIDYASAGAR UNIVERSITY for their infrastructural assistance to carry out the research. This work was supported by the 2010 Specialization Project Research Grant funded by the Pusan National University . Dr. Biswajit Sarkar would like to express his gratitude to his wife and son for their support.
All Science Journal Classification (ASJC) codes
- Computational Mathematics
- Applied Mathematics