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Optimal Profit for Regular Production Run Considering Price Sensitive and Inventory Dependent Demand
Abstract
This paper attempts a problem with over time production of products having non-linear price and stock dependent demand. We have found out the overtime production cycle time and selling price that optimize the profit of the system. The problem has been solved by using Mathematica. The effect of parameters has been in insured specially for price. Some results have been established for selling price, cycle time and optimum over time production time. In addition, we demonstrate that total profit per unit time is a concave function of price and inventory holding period separately. The numerical examples and sensitivity analysis help to analyse the impact of changes in various parameters on decision variables and total profile.
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ISSN(P) 2350-0174

ISSN(O) 2456-2378

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