Abstract � Production system may be affected due to labor problem, manufacturing defects, machine breakdowns etc. and those reduce the reliability of system and also affect the goodwill of product. Before a production system disrupts, management needs to study the variation of demand pattern and customer arrival pattern. Many models are developed in literature with constant demand rate. In this paper, we incorporate variable demand rate and the uniform production rate both, and suggest a flexible managerial decision policy for a disrupted production system. The disruption based problem is solved analytically to determine production time before and after disruptions. An attractive feature of the approach is that both increasing and decreasing trends of demand are analyzed for deteriorating items with useful outcomes and results. A graph based simulation study is appended in order to find which of the model parameter is having most significant effect for a disrupted production system.

Abstract: In this paper, we have modeled a business process which starts with shortage of deteriorating items. After a duration managers have freedom to order the stock of assurance of committed customers. There are many products that follow logarithmic demand pattern, so in this paper we incorporate it with the shortage of items at the beginning. A new model is developed to obtain the optimal solution for such type of market situation and have obtained some valuable results. Numerical examples and simulation study is appended along with managerial insights.