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Mohammad Ekramol Islam
Professor, PhD. Department of Business Administration, Northern University Bangladesh. Dhaka-1205
Email: [email protected]
Mohammad Ataullah
Assistant Professor of Mathematics, Directorate of Secondary and Higher Education, Bangladesh. Dhaka-1342
Email: [email protected]
Abstract
This paper analyzes a single product stochastic inventory model with two different rates of production, where demand follows Poisson distribution. It is assumed that products have infinite life-time that is not decay for the time under consideration. It is assumed that when the system reaches on a predetermined level, the system is converted to ON mode from OFF mode with a significant switching time with exponential parameter 𝜏. During switching time, no demand will be met. And hence, the demand during switching time is lost forever. Here backlogs are allowed and during backlogs, Production rate is higher than that of normal production time. Some system characteristics are displayed with time variation and total cost functions are derived. Finally, graphical representations are made.
Keywords
Poisson distribution, Product Life-Time, Switching Time, Backlogs, Level Dependent
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