Economic production lot size for deteriorating items taking account of the time-value of money

作者： Hui-Ming Wee , Sh-Tyan Law

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摘要: Abstract This study applies the discounted cash-flow approach to a deterministic inventory model of an item that deteriorates over time at varying rate. An optimization framework is presented derive optimal production and pricing policies maximize net present value profits finite planning horizon. A numerical example provided illustrate procedure. Scope purpose for with price-dependent demand developed in this study. It assumed rate shortages are allowed. The considers environment replenishment time-value money various costs associated system also considered.