Finite Production Rate Inventory Models with Increasing Production Cost

This paper investigates the dynamic inventory model for the case when production in a period is restricted to a finite set of specified values. The model allows the production rate to be any value in the set (0, P, 2P, ..., mP), where m is a non-negative integer. It is assumed that the setup cost is paid only once for a production block and the holding cost is monotonically or linearly increasing. Efficient planning horizon procedures have been developed for this model