A New Continuous Production Lot Size Model with Increasing Time Varying Demand and Variable Rate of Production Considering Shortages

Here an optimal continuous Production Lot size(PLS) model is developed for deterio rating items with increasing time varying demand over a finite planning horizon.The production rate is dealt with as a decision variable.The deterioration rate is assumed to be a constant fraction of the on hand inventory level.Shortages are permitted in every production cycle and are not backlogged.Some properties for the optimal solution of the proposed model are shown.The solvting procedure is proposed to generate an optimal continuous production schedule. The corresponding models with no deterioration and no shortage are derived as the special cases.Numerical examples for illustrating the solvting procedure are employed for linearly increasing demand.