Abstract

The paper describes an EMQ (Economic Manufacturing Quantity ) model for a deteriorating item
considering time-dependent demand. The deterioration rate is a constant fraction of the on hand inventory
and we have considered three types of demand like, quadratic, exponential and stock dependent. Here our
objective is to determine optimal product reliability and production rate that achieves the maximum profit
for an imperfect manufacturing process. We use the Euler-Lagrangin method to find the optimal solution
for product reliability parameter and dynamic production rate. It is then illustrated with the help of
numerical examples.