Optimal policy for profit maximising in an EOQ model under non-linear holding cost and stock-dependent demand rate

2012 ◽  
Vol 43 (11) ◽  
pp. 2160-2171 ◽  
Author(s):  
V. Pando ◽  
J. García-Laguna ◽  
L.A. San-José
Keyword(s):  
Optimal Policy ◽  
For Profit ◽  
Eoq Model ◽  
Stock Dependent Demand ◽  
Non Linear ◽  
Demand Rate ◽  
Holding Cost ◽  
Dependent Demand Rate ◽  
Dependent Demand

scholarly journals An EOQ inventory model for deteriorating items with controllable deterioration rate under stock-dependent demand rate and non-linear holding cost

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Shuhua Zhang ◽  
Longzhou Cao ◽  
Zuliang Lu
Keyword(s):  
Technology Investment ◽  
Reorder Point ◽  
Preservation Technology ◽  
Stock Dependent Demand ◽  
Demand Rate ◽  
Total Profit ◽  
Holding Cost ◽  
Preservation Technology Investment ◽  
Dependent Demand Rate ◽  
Dependent Demand

<p style='text-indent:20px;'>The main purpose of this paper is to investigate the retailer's strategy in selecting the order-up-to level, the reorder point and the preservation technology investment for deteriorating items, aiming to maximize his total profit per unit time. We formulate the problem into a mathematical model that takes into account stock-dependent demand rate, stock-dependent holding cost. The terminal conditions are relaxed to allow that the reorder point can be one of the following two cases: (1) <inline-formula><tex-math id="M1">\begin{document}$ N\leq0 $\end{document}</tex-math></inline-formula>, i.e., the reorder point may be negative or zero. When the reorder point is negative, the shortage is allowed and partial backlogged. (2) <inline-formula><tex-math id="M2">\begin{document}$ N\geq0 $\end{document}</tex-math></inline-formula>, i.e., the reorder point may be without shortage or zero. We prove the existence and uniqueness of the optimal order-up-to level, the reorder point and the preservation technology investment under any given two of them for both the two cases. We then present an algorithm to search for decision variables such that the total profit per unit time is maximized. Finally, numerical examples, comparisons in performance and sensitivity analysis are carried out to examine the results obtained. On the basis of the above results, some useful managerial insights are revealed.</p>

EOQ Model with Time Dependent Demand Rate and Time Dependent Holding Cost Function

2013 ◽  
pp. 381-392
Author(s):  
R. P. Tripathi
Keyword(s):  
Infinite Horizon ◽  
Decision Rules ◽  
Time Dependent ◽  
Single Item ◽  
Eoq Model ◽  
Optimal Policies ◽  
Demand Rate ◽  
Holding Cost ◽  
Dependent Demand Rate ◽  
Dependent Demand

In this paper the authors consider the continuous deterministic, infinite horizon, single item inventory system within the setting of a retailer sector in which the demand rate for an item is time dependent. The parameter of the replenishment cost is kept constant, but the carrying cost per unit is allowed to vary. The optimal policies are found, and decision rules and classical EOQ model have been obtained by considering two different models. Numerical examples are given to illustrate the proposed models.

EOQ Model with Time Dependent Demand Rate and Time Dependent Holding Cost Function

2011 ◽  
Vol 2 (3) ◽  
pp. 79-92 ◽  
Author(s):  
R. P. Tripathi
Keyword(s):  
Infinite Horizon ◽  
Decision Rules ◽  
Time Dependent ◽  
Single Item ◽  
Eoq Model ◽  
Optimal Policies ◽  
Demand Rate ◽  
Holding Cost ◽  
Dependent Demand Rate ◽  
Dependent Demand

In this paper the authors consider the continuous deterministic, infinite horizon, single item inventory system within the setting of a retailer sector in which the demand rate for an item is time dependent. The parameter of the replenishment cost is kept constant, but the carrying cost per unit is allowed to vary. The optimal policies are found, and decision rules and classical EOQ model have been obtained by considering two different models. Numerical examples are given to illustrate the proposed models.

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