Optimal production strategy for deteriorating items with varying demand pattern under inflation

Ibraheem Abdul, Atsuo Murata

Research output: Contribution to journalArticlepeer-review


This paper presents production-inventory models for deteriorating items with increasing-steadydecreasing demand pattern under the effect of inflation and time value of money. This type of demand behavior can be observed in some fashion products or seasonal products in general. Shortages are allowed with partial backlogging of demand and a two-parameter Weibulldistribution function is used for the deterioration of items in order to make the models more generalized and realistic. The models generate optimal values of initial production run time, onset of shortages, production recommencement time, and total production quantity that minimizes the total relevant costs of production and inventory for any given set of system parameters. Various possible production strategies available for items with variable demand pattern are examined to determine the optimal production strategy. The discounted cash flow approach and trust region optimization methods are used to obtain the optimal results. The Numerical examples and sensitivity analysis show that the optimal production strategy may vary with changes in system parameters.

Original languageEnglish
Pages (from-to)449-466
Number of pages18
JournalInternational Journal of Industrial Engineering Computations
Issue number3
Publication statusPublished - 2011


  • Inflation
  • Inventory
  • Partial backlogging
  • Production
  • Varying demand pattern
  • Weibull deterioration

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering


Dive into the research topics of 'Optimal production strategy for deteriorating items with varying demand pattern under inflation'. Together they form a unique fingerprint.

Cite this