LAUSR

In this present work, a single item production–inventory model is considered. The rate of production is considered as variable. Here the production of defective items also considered. Since some defective items are being produced, corresponding to that a damage rate is applied. It is assumed that there is a demand for both defective and non-defective items. Thus, two types of demand have been considered here. It is considered that the production rate is a monotonically decreasing function. An efficiency cost has also been applied to fulfill the customers’ demand. Under these circumstances, a profit function is constructed for the manufacturer. Finally, the proposed model is discussed considering some numerical data.