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.

Creator(s)

• (96-007) I Gede Agus Widyadana
• HUI MING WEE

Contributor(s)

-

Publisher

Universitas Kristen Petra; 2010

Language

English

Category

jou – Journal

Sub Category

-

Source

Jurnal Teknik Industri, Vol. 12, No. 2, Desember 2010, 61-68; Gede Agus Widyadana (96-007), Hui Ming Wee (NA00000780)

Subject(s)

• INVENTORY CONTROL

File(s)

• jiunkpe-ns-jou-2010-96-007-17416-inventory-resource1.pdf