Application of optimal control theory to adjust the production rate of deteriorating inventory system (Case study: Dineh Iran Co.)

S. M. Sajadi, M. Shafiee, Gh Emamverdi

Research output: Chapter in Book/Published conference outputConference publication

Abstract

In this paper, optimal control of production inventory system with deteriorating items is considered. It is assumed that deterioration rate follows the Weibull distribution. It is, also, assumed that the demand of the manufacturing product is time dependent. For building our model we will assume that the firm has set an inventory goal level and production goal rate. We will study a periodic policy review and Lagrangian technique is used. The objective is to determine the optimal production rate. we adjust the optimal production rate to minimum total (production and inventory) costs. The assumption of a time variant demand is more real in the world and makes the result of this research more practical for Industries. This model has been applied in Dineh Iran Co., The Group of Pharmaceutical, Hygienic & Food Industries.

Original languageEnglish
Title of host publication21st International Conference on Production Research
Subtitle of host publicationInnovation in Product and Production, ICPR 2011 - Conference Proceedings
EditorsTobias Krause, Dieter Spath, Rolf Ilg
PublisherFraunhofer
ISBN (Electronic)9783839602935
Publication statusPublished - 2011
Event21st International Conference on Production Research: Innovation in Product and Production, ICPR 2011 - Stuttgart, Germany
Duration: 31 Jul 20114 Aug 2011

Publication series

Name21st International Conference on Production Research: Innovation in Product and Production, ICPR 2011 - Conference Proceedings

Conference

Conference21st International Conference on Production Research: Innovation in Product and Production, ICPR 2011
Country/TerritoryGermany
CityStuttgart
Period31/07/114/08/11

Keywords

  • Deterioration items
  • Inventory control system
  • Lagrangian technique
  • Optimal control theory
  • Production planning
  • Weibull distribution

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