Production Inventory Model for Three Levels of Production with Defective Items, Shortages Including Multi-delivery Policy

In this chapter, we proposed three alternative rates of production or manufacturing inventory with defective items including, shortages with a multi- delivery policy. The purpose is to reduce the rate of production at initial stage is avoided. We proposed two models, in that model II holding cost value is less than model I. Model II gives minimum holding cost in the shortage period. The objective is to minimize the holding cost and total variable cost. Numerical examples are provided to validate the proposed inventory model. Finally,sensitivity analyses are performed to investigated the impact of charging various system parameters.