Table of Contents
ISRN Operations Research
Volume 2013, Article ID 485172, 8 pages
http://dx.doi.org/10.1155/2013/485172
Research Article

EPQ Model for Trended Demand with Rework and Random Preventive Machine Time

1Department of Mathematics, Gujarat University, Ahmedabad, Gujarat 380009, India
2Department of Mathematics, Government Polytechnic for Girls, Ahmedabad, Gujarat 380015, India
3Department of Mathematics, L.D. College of Engineering, Ahmedabad, Gujarat 380015, India

Received 20 April 2013; Accepted 9 June 2013

Academic Editors: I. Ahmad, P. Ekel, and Y. Yu

Copyright © 2013 Nita H. Shah et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Economic production quantity (EPQ) inventory model for trended demand has been analyzed with rework facility and stochastic preventive machine time. Due to the complexity of the model, search method is proposed to determine the best optimal solution. A numerical example and sensitivity analysis are carried out to validate the proposed model. From the sensitivity analysis, it is observed that the rate of change of demand has significant impact on the optimal inventory cost. The model is very sensitive to the production and demand rate.