scholarly journals Inventory Model with Fixed Shelf Life under Generalized Non-Increasing Demand

Mathematics ◽  
2021 ◽  
Vol 9 (21) ◽  
pp. 2735
Author(s):  
Han-Wen Tuan ◽  
Kuo-Chen Hung ◽  
Gino K. Yang
Keyword(s):  
Shelf Life ◽  
Economic Order Quantity ◽  
Order Quantity ◽  
Financial Loss ◽  
The Public ◽  
Eoq Model ◽  
Maximum Profit ◽  
Maximum Solution ◽  
Total Profit ◽  
Increasing Demand

In this paper, we develop an economic order quantity (EOQ) model for fixed shelf-life items and a non-increasing demand. The objective of this model is to maximize the total profit. We find the criterion to decide (i) the interior maximum solution or (ii) the boundary maximum solution. Eight numerical examples are given to illustrate all possible scenarios of this generalized model. Our results identify a scenario for which the maximum profit is always negative. This is highly relevant for firms in the public sector operating at a financial loss.

scholarly journals Retailer’s optimal ordering policies for EOQ model with imperfective items under a temporary discount

2016 ◽  
Vol 26 (2) ◽  
pp. 219-240
Author(s):  
Wen Lin ◽  
Horng Chang
Keyword(s):  
Economic Order Quantity ◽  
Order Quantity ◽  
Objective Functions ◽  
Inventory Models ◽  
Screening Process ◽  
Numerical Examples ◽  
Closed Form Solutions ◽  
Eoq Model ◽  
Optimal Ordering ◽  
Special Order

In this article, we study inventory models to determine the optimal special order and maximum saving cost of imperfective items when the supplier offers a temporary discount. The received items are not all perfect and the defectives can be screened out by the end of 100% screening process. Three models are considered according to the special order occurs at regular replenishment time, non-regular replenishment time, and screening time of economic order quantity cycle. Each model has two sub-cases to be discussed. In temporary discount problems, in general, there are integer operators in objective functions. We suggest theorems to find the closed-form solutions to these kinds of problems. Furthermore, numerical examples and sensitivity analysis are given to illustrate the results of the proposed properties and theorems.

scholarly journals Economic Order Quantity Model for Perishable Items Having Exponentially Increasing Demand

2019 ◽  
Vol 9 (1) ◽  
pp. 462
Author(s):  
Sarbjit Singh ◽  
Sayan Banerjee
Keyword(s):  
Fast Moving ◽  
Economic Order Quantity ◽  
Optimal Order ◽  
Order Quantity ◽  
Perishable Items ◽  
Perishable Goods ◽  
Constant Rate ◽  
Rapid Pace ◽  
Optimal Order Quantity ◽  
Increasing Demand

This study considers perishable items whose deterioration starts immediately after procurement with constant rate of deterioration, ξ. The goods considered in the paper are fast moving goods whose demand is increasing at a very rapid pace. Therefore, the demand has been considered as exponentially increasing demand. This study provides the buyer with a policy that aids them to decide their optimal order quantity considering the goods are perishable goods with exponentially increasing demand.

Economic Order Quantity Model for Minimizing Total Inventory Cost at PT PQR in Indonesia

2015 ◽  
Vol 21 (4) ◽  
pp. 1053-1056
Author(s):  
Bachtiar H. Simamora
Keyword(s):  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Traditional Practice ◽  
Inventory Costs ◽  
Eoq Model ◽  
Total Inventory

The purpose of this research is to see whether an Economic Order Quantity model can be used to reduce cost of inventory significantly in PT PQR, manufacturer of spring and sponge mattresses in Pekanbaru, Indonesia. The research was conducted on three main materials required in producing spring and sponge mattresses. Using Economic Order Quantity (EOQ) model to analyze historical demand on main materials, it is proven that with EOQ model the company can save by more than 45% from procuring and inventory costs of those materials. The research continues to forecast the sales demand to get the annual requirement of materials needed in 2014 and calculate the EOQ model again. The results show that, comparing with traditional practice done by company, EOQ model can reduce costs up to 118 million rupiah per year.

scholarly journals Empirical Evaluation of Economic Order Quantity Model for Choice of Shipment Size in Freight Transport

2012 ◽  
Vol 2269 (1) ◽  
pp. 92-98 ◽  
Author(s):  
François Combes
Keyword(s):  
Dominant Role ◽  
Mode Choice ◽  
Empirical Evaluation ◽  
Freight Transport ◽  
Heterogeneous Population ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Commodity Flow ◽  
Eoq Model

The choice of shipment size in freight transport depends on the logistical imperatives of shippers and the technical possibilities of carriers. The choice is closely related to the mode of transportation and therefore important for public policy. The theory of optimal shipment size and mode choice is robust. Numerous inventory-theoretical models of optimal shipment size are applied by shippers in operational contexts. However, none has been validated empirically over a large and heterogeneous population of shipments, and thus none are useful for modeling freight transportation demand, particularly because of the lack of adequate data. The simple economic order quantity (EOQ) model was assessed empirically on a national scale over a heterogeneous population of shipments. The French ECHO database, which observed commodity flow rates between shippers and receivers, was used to estimate the EOQ shipment size specification, and the validity of the EOQ model was confirmed. The study revealed the dominant role of the commodity flow rate between shipper and receiver and of commodity value density. The relationship between mode choice and shipment size is highlighted.

Application of a Fuzzy EOQ Model to the Stock Management in the Manufacture System

2012 ◽  
Vol 499 ◽  
pp. 361-365
Author(s):  
Chien Chang Chou ◽  
J.M. Yih ◽  
J.F. Ding ◽  
T.C. Han ◽  
Y.H. Lin ◽  
...  
Keyword(s):  
Inventory Control ◽  
Fuzzy Number ◽  
Inventory Model ◽  
Economic Order Quantity ◽  
Order Quantity ◽  
Stock Management ◽  
Square Roots ◽  
Manufacture System ◽  
Eoq Model ◽  
Inventory Control Problem

In a manufacture system, the inventory control is one of important issues. This paper proposes a fuzzy economic order quantity (EOQ) inventory model for solving the inventory control problem in the manufacture system. Firstly, this paper discusses the square roots of a trapezoidal fuzzy number. Secondly, the square root of fuzzy number is applied to the EOQ inventory model in the manufacture system.

scholarly journals Tinjauan Kapasitas Persediaan Produk Fuji Seat PT. Tri Jaya Teknik Karawang

2021 ◽  
Vol 5 (1) ◽  
pp. 33
Author(s):  
Aries Adiyanto ◽  
Dene Herwanto
Keyword(s):  
Raw Materials ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Administrative Costs ◽  
Eoq Model ◽  
Engineering Company ◽  
Holding Cost ◽  
The Cost

PT. Tri Jaya Teknik Karawang is an engineering company engaged in fabrication, machining and side parts. PT. Tri Jaya Teknik started pioneering a business since 2007 and started owning and occupying its own workshop in 2009. Currently the company already has 2 plant workshops with a total area of 3,080 m2 and has about 100 employees. One of the products produced is Fuji seat, based on the data collected there are 3 parts of the process. The 3 parts of the process are repair 1, repair 2, repair 3. With each there is a check parts & packing table. The method used in companies to manage raw material inventories is still conventional, namely by making continuous purchases without estimating according to needs. So that there is often an excess of raw materials or a shortage of raw materials at a certain time, this makes the costs incurred inefficient and often disrupts the production process. A review of the inventory capacity of Fuji Seat products in this study was carried out using the Economic Order Quantity (EOQ) model. The main raw material inventory data used is Fuji Seat in the 2016-2019 period. Holding cost raw materials is set by PT. Tri Jaya Teknik Karawang is 2.5% of the price per pcs, this value is used for procurement and repair of tools and equipment in the warehouse. If there is no damage, the cost is allocated to the warehouse manager in that month. Meanwhile, the cost of ordering which consists of the price of goods and shipping costs is determined by PT. Tri Jaya Teknik Karawang, amounting to IDR 100,000.00. This fee includes administration and transportation costs. Administrative costs, namely executive salaries and other supporters, as well as taxes related to the company. The cost of shipping transport is the distance traveled and the weight of the product ordered. Based on the calculation of EOQ (Economic Order Quantity), the most economical amount of raw materials using the EOQ model is 6,815.5 Pcs with 187 purchases a year. PT. Tri Jaya Teknik Karawang adalah perusahaan engineering yang bergerak di bidang fabrikasi, machining dan part samping. PT. Tri Jaya Teknik mulai merintis bisnis sejak tahun 2007 dan mulai memiliki dan menempati workshop sendiri di tahun 2009. Saat ini perusahaan telah memiliki 2 plant workshop dengan total luas 3.080 m2 dan memiliki karyawan berjumlah sekitar 100 orang. Salah satu produk yang dihasilkan adalah fuji seat, berdasarkan data yang dikumpulkan ada 3 bagian proses. 3 bagian proses itu adalah repair 1, repair 2, repair 3. Dengan masing-masing terdapat meja check part & packing. Metode yang digunakan pada perusahaan untuk mengelola persediaan bahan baku masih secara konvensional, yaitu dengan melakukan pembelian terus menerus tanpa memperkirakan sesuai dengan kebutuhan. Sehingga seringkali terjadi kelebihan bahan baku atau kekurangan bahan baku di saat tertentu, hal ini membuat biaya yang dikeluarkan menjadi tidak efisien dan sering kali mengganggu proses produksi. Tujuan penelitian ini yaitu mampu mengetahui perhitungan EOQ dan frekuensi pembelian yang paling ekonomis dalam perusahaan. Tinjauan kapasitas persediaan produk Fuji Seat dalam penelitian ini dilakukan dengan menggunakan model Economic Order Quantity (EOQ). Data persediaan bahan baku utama yang digunakan adalah Fuji Seat pada periode 2016-2019.Biaya penyimpanan bahan baku di tetapkan oleh pihak PT. Tri Jaya Teknik Karawang sebesar 2,5% dari harga per pcs, nilai tersebut digunakan untuk keperluan pengadaan dan perbaikan 

scholarly journals An EOQ model with stock dependent demand and imperfect quality items

2010 ◽  
Vol 20 (2) ◽  
pp. 237-247 ◽  
Author(s):  
Shibaji Panda
Keyword(s):  
Optimal Order ◽  
Optimal Solutions ◽  
Order Quantity ◽  
Screening Process ◽  
Imperfect Quality ◽  
Eoq Model ◽  
Total Profit ◽  
Approximate Optimal Solutions ◽  
Single Batch ◽  
Dependent Demand

This paper deals with an economic order quantity model where demand is stock dependent. Items received are not of perfect quality and each lot received contains percentage defective imperfect quality items, which follow a probability distribution. Two cases are considered. 1) Imperfect quality items are held in stock and sold in a single batch after a 100 percent screening process. 2) A hundred percent screening process is performed but the imperfect quality items are sold as soon as they are detected. Approximate optimal solutions are derived in both cases. A numerical example is provided in order to illustrate the development of the model. Sensitivity analysis is also presented, indicating the effects of percentage imperfect quality items on the optimal order quantity and total profit.

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