Research On The Application Of Manufacturers Deteiroration Items’ Production Inventory Problem Based On Time-varying Demand

Deterioration items are common in our daily life, since its deteriorating nature,from production process to circulation process, deterioration items always have alarger proportion of loss. Manufacturers often need to take special attention to them. Asa special kind of product, deterioration items’ replacement is very fast. In the highlycompetitive market environment, decision makers confront uncertainty demand, howto propose an efficient production-inventory decision is very important. If productivityis too high, it will lead to a large backlog of inventory, employing funds. Ifproductivity is too low, it will not meet the market needs, manufacturers losing theopportunity of profit will bring losses. The problem of production and inventory hasbeen the focus of manufacturers’ operational decisions. A good production andinventory strategy can make enterprises gain competitive, reduce costs and increaseprofits. Thus, for manufacturers coping with the fierce marketing competition, thestudy of deterioration items’ production and inventory problem has an importantpractical significance.On the basis of reviewing domestic and foreign scholars’ research results ondeterioration items production and inventory problem, this paper summarizes existingdeteriorating items inventory theory, analyses several typical production inventorymodels, elaborates the models’ assumptions, principles and results, points out theirstrengths and weaknesses. Based on the existing production inventory models, thispaper considers the single deterioration item models and a multi-itemsproduction-inventory model under different assumptions. In the finite planning period,the single-item model considers that production rate, demand rate and deteriorationrate are time-varying, whether allows out of stock, etc., obtains the correspondingoptimal production inventory policy; the multi-items model considers that shortagesare not allowed, the production rate, demand rate and deterioration rate are all constant,the inventory of a product affects the demand of other products, the model developswith storage space and funds as constraints, obtains the mutual restraint optimalproduction inventory policy.This paper researches the dairy products manufacturer’s production and inventoryproblem. Based on the current demand data of the typical enterprise, we get the fittingequation of demands and predict future demands. According to the predicted demand, we make data analysis on the optimal production inventory policy and compare thechange of natural deterioration after improved. The result indicates that the models arefeasible and effective in the case of selected milk enterprise.