Perishable Production Inventory Model for Exponential Demand Rate with Constant Production Rate and offering Discount during Production Run

Abstract

This research paper presents a perishable inventory model tailored for items with an exponentially demand rate and constant production rate, incorporating a discount offered during production run. The study assumes an initial buffer stock of inventory, constant replenishment, and zero lead time, with the production rate exceeding demand at any time. As inventory depletes rapidly post-peak level due to demand and deterioration, the model seeks to maximize profit per cycle while accounting for the costs associated with decayed and undecayed inventory. Key factors such as setup cost, holding costs, discount rate, and decay rate are integrated into the model. Through this analysis, we provide insights into optimal production strategies and replenishment for perishable items, contributing to the efficient management of perishable inventories.

Keywords

• Perishable inventory
• Exponential demand rate
• Buffer stock
• Inventory level fluctuation
• Production run

How to cite

Tanjirul Islam, Md. Asrafi Al Mamun, Mohammad Ekramol Islam (2025). Perishable Production Inventory Model for Exponential Demand Rate with Constant Production Rate and offering Discount during Production Run. Sonargaon University Journal, 5(I), 165–180.

@article{islam20259,
  title   = {Perishable Production Inventory Model for Exponential Demand Rate with Constant Production Rate and offering Discount during Production Run},
  author  = {Tanjirul Islam and Md. Asrafi Al Mamun and Mohammad Ekramol Islam},
  journal = {Sonargaon University Journal},
  volume  = {5},
  number  = {I},
  pages   = {165--180},
  year    = {2025},
  issn    = {2518-3125},
  url     = {https://su.edu.bd/journal/volume-5-issue-1/perishable-production-inventory-model-for-exponential-demand-rate-with-constant}
}