A production-inventory model for a deteriorating item with trended demand and shortages

A production-inventory model is developed for a deteriorating item over a finite planning horizon with a linear time-varying demand, finite production rate and shortages. The resulting nonlinear constrained minimization problem is numerically solved by using the box complex algorithm. The optimal number of production cycles that minimizes the average system cost is determined. Sensitivity analysis of the optimal solution is carried out. (C) 2003 Elsevier B.V. All rights reserved.