Izvorni znanstveni članak
https://doi.org/10.17535/crorr.2026.0016
Optimizing an imperfect production system with varying production cost under selling price and advertising-driven demand
Shilpy Tayal
; Department of Mathematics, Graphic Era Hill University, Clement Town, India
Shiv Raj Singh
; Department of Mathematics, Ch. Charan Singh University, Uttar Pradesh, India
Mohit Rastogi
; Department of Applied Sciences and Humanities, ABES Engineering College, Uttar Pradesh, India
*
Saurabh Bahuguna
; Department of Mathematics, Graphic Era Hill University, Clement Town, India
* Dopisni autor.
Sažetak
This study develops a production inventory model that accounts for imperfect production processes, acknowledging that a certain percentage of items produced are defective, reason being labor inefficiencies and machinery malfunctions. These defective items are identified and are segregated during the quality check and inspection phase and sold at a discounted price. The model incorporates economies of scale, whereby production costs decreases as productivity increases, and represents production costs as a diminishing function of productivity. Furthermore, the demand rate is modeled as dependent on advertising frequency and selling price, impacting significantly the product demand. The primary objective of this research is to determine the optimal advertising frequency, selling price, and the production cycle that maximize overall system profit. A numerical illustration is provided to validate the model, and a sensitivity analysis is conducted to assess the stability of the system. The findings reveal that increased demand reduces production time and raises pricing potential that leads to boosting of profits. Higher production rates improve efficiency and lower unit costs, while a higher defect rate and rising holding costs adversely impact profitability, which illustrates the importance of quality control and efficient inventory management. These insights highlight the model's practicality and innovation, offering valuable guidance for optimizing operations, managing costs, and achieving sustainable growth.
Ključne riječi
advertisement dependent demand; imperfect production; production model; selling price; variable production cost
Hrčak ID:
344302
URI
Datum izdavanja:
9.2.2026.
Posjeta: 512 *