Research On The Inventory Model Of Raw Materials And Products In Variable Demand

This thesis investigates an inventory model of raw materials and products with variable demand. We consider not only the inventory cost of products, but also the inventory cost of raw materials, where the nonlinear demand rate is chosen for the actual case. Given a finite time-horizon and many batches, we discuss whether the inventory has shortages under the condition that the successive cycle production time decreases progressively or the successive cycle production rate increases progressively. The inventory model of raw materials and products without shortages is also proposed under the condition that the successive cycle production time and the demand rate are random. A new method for the optimal production rate is presented as well.