Keywords : Economic Production Quantity (EPQ)
European Journal of Molecular & Clinical Medicine,
2021, Volume 8, Issue 4, Pages 638-644
Economic Order Quantity (EOQ), an inventory model is ideal to produce cent percent
ordered items. But practically, this assumption becomes invalid as process deterioration,
production processes and other factors pop up. The customer’s expectation and marketing
demands can be satisfied, if only the production rate becomes a function of demand rate.
As the demand and deterioration products are time dependent function, eventually allowed
shortages will be partially backlogged. Rate of backlog is contingent on the waiting time up
to the arrival next lot. To prevail over these sparsities, this paper signifies the application of
EPQ model to contemplate the optimal production run time, production quantity and
shortage period aiming to minimise the total average cost.