EXPONENTIAL DEPENDENT DEMAND RATE ECONOMIC PRODUCTION QUANTITY (EPQ) MODEL WITH FOR REDUCTION DELIVERY POLICY

This paper derives, production inventory model for exponential dependent demand and cost reduction delivery policy. Production rate is proportional to demand rate. Mathematical model is presented to find optimal order quantity and total cost. Numerical example is provided to validate the optimal solution. Sensitivity analysis is carried out to distinguish the change in the optimal solution with respect to the variation of one parameter at a time. Mathematica software is used to find the numerical results.