Production inventory models for deteriorating items with stochastic machine unavailability time, lost sales and price-dependent demand

The economic production quantity (EPQ) model is widely employed in reality and is
also being intensively developed in the research area. This research tries to develop more
realistic EPQ models for deteriorating items by considering stochastic machine unavailability
time (uniformly and exponentially distributed) and price-dependent demand. Lost sales will
occur when machine unavailability time is longer than the non production time. Since the closed
form solution cannot be derived, we use Genetic Algorithm (GA) to solve the models. A numerical
example and sensitivity analysis is shown to illustrate the models. The sensitivity analyses show
that a management can use price policy to minimize the profit loss due to machine unavailability
time under a price- dependent demand situation.

I Gede Agus Widyadana; HUI MING WEE Unknown Universitas Kristen Petra English eDIMENSI Journal Unknown Jurnal Teknik Industri, Vol. 12, No. 2, Desember 2010, 61-68; Gede Agus Widyadana (96-007), Hui Ming Wee (NA00000780) INVENTORY CONTROL

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