Production Inventory Model for Deteriorating Items with Common Distribution Machine Unavailability

In this work we developed EPQ models for deteriorating items by considering stochastic machine unavailability and price-dependent demand. Moreover, we approach the distribution of the machine unavailability using kernel density estimation. Therefore, the assumption of any distribution models, such as uniformly or exponentially distribution can be neglected and the shape of the distribution will follow the given data. To solve the models, we will employ Genetic Algorithm, since the close form solution cannot be derived. A numerical example and sensitivity analysis will be given to illustrate the models.