scholarly journals Optimizing Multi-Item EOQ when the Constraint of Annual Number of Orders is Active

2016 ◽  
Vol 11 (1) ◽  
pp. 55
Author(s):  
Karzan Mahdi Ghafour ◽  
Rezan Hama Rashid
Keyword(s):  
Economic Order Quantity ◽  
Annual Number ◽  
Order Quantity ◽  
Inventory Models ◽  
Lagrange Method ◽  
Left Hand ◽  
Side Condition ◽  
Proposed Model ◽  
The Right ◽  
New Formula

The responsibility in inventory models decides of how much or how many of inventory items to order. An economic order quantity (EOQ) differs from a model to another according to the assumptions and the variables. This paper has developed the EOQ in two deterministic inventory model (Purchases with shortage and production with shortage) of multi-item when the objective function is subjected to annual number of orders. The constraints are assumed to be active if the left hand side does not satisfy the right hand side condition. Thus, Lagrange method is used to find the new multi-item EOQ in each two models with the constraint to achieve the new formula of EOQ. Finally, a numerical example is provided to justify the proposed model.

scholarly journals The Role of Items Quantity Constraint to Control the Optimal Economic Order Quantity

2017 ◽  
Vol 11 (9) ◽  
pp. 61
Author(s):  
Karzan Mahdi Ghafour
Keyword(s):  
Production Model ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Models ◽  
Left Hand ◽  
Side Condition ◽  
Proposed Model ◽  
The Right ◽  
New Formula

The obligation or the traditional question in inventory models is how much or how many of inventory items to order. In inventory control, the economic order quantity, EOQ is varies from model to another based on the variables and assumptions. This paper develops the EOQ using two deterministic inventory models (Purchases model and production model with shortage) of multi-items when the objective function is subjected to a constrained number of items quantities. The constraints are supposed to be active if the left-hand side does not satisfy the right-hand side condition. Thus, to achieve the new formula of multi-item EOQ in each of the two models with the constraint, Lagrange method have been used. Finally, to provide the proposed model a numerical example has been used.

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 Fuzzy economic order quantity inventory models without backordering

2007 ◽  
Vol 12 (1) ◽  
pp. 91-96 ◽  
Author(s):  
Xiaobin Wang ◽  
Wansheng Tang ◽  
Ruiqing Zhao
Keyword(s):  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Models

scholarly journals An Economic Order Quantity Model with Completely Backordering and Nondecreasing Demand under Two-Level Trade Credit

2014 ◽  
Vol 2014 ◽  
pp. 1-11 ◽  
Author(s):  
Zohreh Molamohamadi ◽  
Rahman Arshizadeh ◽  
Napsiah Ismail ◽  
Amir Azizi
Keyword(s):  
Demand Function ◽  
Trade Credit ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Competitive Industry ◽  
Decision Variables ◽  
Proposed Model ◽  
Special Cases ◽  
Optimal Ordering

In the traditional inventory system, it was implicitly assumed that the buyer pays to the seller as soon as he receives the items. In today’s competitive industry, however, the seller usually offers the buyer a delay period to settle the account of the goods. Not only the seller but also the buyer may apply trade credit as a strategic tool to stimulate his customers’ demands. This paper investigates the effects of the latter policy, two-level trade credit, on a retailer’s optimal ordering decisions within the economic order quantity framework and allowable shortages. Unlike most of the previous studies, the demand function of the customers is considered to increase with time. The objective of the retailer’s inventory model is to maximize the profit. The replenishment decisions optimally are obtained using genetic algorithm. Two special cases of the proposed model are discussed and the impacts of parameters on the decision variables are finally investigated. Numerical examples demonstrate the profitability of the developed two-level supply chain with backorder.

scholarly journals EFECTOS DEL MODELO DETERMINÍSTICO E.O.Q. EN LAS COMERCIALIZADORAS DE PRODUCTOS DE CONSUMO MASIVO, MILAGRO – ECUADOR

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Freddy Tejada Escobar ◽  
Erika Romero Cárdenas ◽  
Carlos Castillo Yagual ◽  
Isaac Zambrano Aguilar
Keyword(s):  
Inventory Management ◽  
Deterministic Model ◽  
Consumer Products ◽  
Economic Order Quantity ◽  
Optimum Level ◽  
Order Quantity ◽  
Deterministic Models ◽  
Palabras Clave ◽  
The Right ◽  
Financial Losses

El objetivo fundamental de este trabajo analiza los efectos que induce la aplicación del Modelo Determinístico en el proceso de abastecimiento de inventario, a través de revisión de registros, control de movimientos para evitar pérdidas financieras. La metodología a seguir en esta diagnosis se llevó a cabo mediante la aplicación de métodos de modelos determinísticos que permiten diseñar un modelo de gestión de inventarios y mejorar sus niveles de eficiencia. El estudio fue realizado a las comercializadoras de productos de consumo masivo, que se encuentran radicadas en el casco comercial de la ciudad de Milagro. Los resultados obtenidos emiten principales beneficios en el control de rotación de mercadería, facilita la constatación del inventario y su control físico así como también la transferencia de los productos. Se demuestra mediante la aplicación del modelo E.O.Q (Cantidad Económica Pedido), conocer con exactitud la cantidad precisa cuando la existencia se encuentre en un nivel óptimo y poder realizar el pedido necesario, disminuyendo los costos de almacenaje. Palabras Clave: Productos de consumo masivo, Control de inventario, Abastecimiento, Modelos Determinísticos E.O.Q. ABSTRACT The main objective of this paper is to analyze the effects caused by the application of Deterministic Model in the procurement process inventory, through review of records, control moves to avoid financial losses. The methodology followed in this diagnosis was carried out by applying methods of deterministic models to design a model of inventory management and improve efficiency levels. The study was conducted to marketers of consumer products, which are based in the commercial town of Milagro. The results issued major benefits in controlling rotation of goods, facilitates the finding of inventory and physical control as well as the transfer of products. It is demonstrated by applying the model E.O.Q (Economic Order Quantity), know exactly the right amount when existence is at an optimum level and need to place the order reducing storage costs. Keywords: Consumer products, Inventory Control, Supply, deterministic models EOQ. Recibido: diciembre de 2015Aprobado: mayo 2016

scholarly journals Raw Material Analysis control of SMBE Slipper Producer using Economic Order Quantity

2021 ◽  
Vol 328 ◽  
pp. 05011
Author(s):  
Sabarudin Ahmad ◽  
Mualim Mualim ◽  
Sugeng Purwoko ◽  
Rifky Yusron
Keyword(s):  
Raw Materials ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Business Enterprise ◽  
Market Demand ◽  
Order Quantity ◽  
Inventory Models ◽  
Monthly Cost ◽  
Market Requirement

The growth of small-medium business enterprise in Indonesia is getting faster in decade, including small-medium business enterprise who produce slippers. SISCO is one of small-medium business enterprise who produce slipper. They must keep tight with market requirement. The supply of raw materials in a small-medium business enterprise is one of the important during production process. In some case their products are mismatch number from market demand. It can be worse if there a mismatch between raw materials ordering schedule from supplier and market demand from consumers. One of this problem requires Economic Order Quantity method as a solution, because during slippers production we have to order from supplier. Inventories are materials stored as raw materials, then they processed be finish product. To find out inventory, one of the inventory models used is the economic order quantity model. This method seeks to achieve the minimum possibility of inventory levels and lower costs and better quality. Economic Order Quantity method calculation based on raw material inventory control in SISCO slipper brand. Optimum monthly cost is IDR 5.293.541,03 to meet supply materials.

scholarly journals PENGEMBANGAN SISTEM PENDUKUNG KEPUTUSAN PENGADAAN DAN PERSEDIAAN BARANG DENGAN METODE PERPETUAL INVENTORY METHOD DAN ECONOMIC ORDER QUANTITY ( Studi Kasus : Divisi Logistik Rumah Sakit Krakatau Medika Cilegon)

Compiler ◽  
2015 ◽  
Vol 4 (1) ◽  
Author(s):  
Gilang Sonar Amanu ◽  
Yuliani Indrianingsih
Keyword(s):  
Integrated System ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Data ◽  
Web Based ◽  
Stock Control ◽  
Perpetual Inventory Method ◽  
The Right ◽  
Inventory Method

The accuracy of data is the capital for making a very useful information for the company business continuity. The value of data can be very expensive if it can be made into a good information and the right target. Procurement and inventory data is one of the things to note in particular the logistics division on the company. Therefore it needs a system using a particular method that can be support the data management of goods procurement and it can also help the managers take the decision of stock control. Based on that, it can be developed to integrated system between procurement data processing and the amount of purchasing materials a single web-based application that implement a method of stock record such as perpetual inventory method and economic order quantity method as well as the methods used to support the decision in calculating the amount of inventory to be optimal. Using the development of the decision support system, some errors related to the recording of data on procurement and inaccuracies in determining the amount of inventory can be reduced. Then the company can avoid the material losses.

Economic-order-type inventory models for non-instantaneous deteriorating items and backlogging

2018 ◽  
Vol 52 (3) ◽  
pp. 895-901 ◽  
Author(s):  
Bashair Ahmad ◽  
Lakdere Benkherouf
Keyword(s):  
Optimal Policy ◽  
Order Type ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Models ◽  
Threshold Policy ◽  
Deterioration Model ◽  
Eoq Model ◽  
Unique Critical Point

This paper is concerned with finding the optimal economic order quantity for the basic (EOQ) inventory model with backlogging in the presence of non-instantaneous deterioration. It is shown that the optimal EOQ is a threshold policy. That is, (i) if the time at which deterioration begins in the non-instantaneous deterioration model is greater than or equal to the time at which backlogging begins in the basic (EOQ) model, then the optimal policy is determined by the parameters of the basic (EOQ) model, else (ii) the optimal policy corresponds to the unique critical point of the objective function for the model with non-instantaneous deterioration. An approach for determining this policy is proposed. This approach is simple and easy to implement. Moreover, it does not suffer from the shortcomings of existing approaches in the literature. A numerical example is presented for illustration.

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