EOQ model with linear time dependent demand and different holding cost functions. (2016)

• Record Type: Journal Article
• Authors: Tripathi, R.P.; Mishra, S.M.
• Is Part Of: International journal of mathematics in operational research. Volume 9:Number 4(2016)
• Page Start: 452
• Page End: 466
• Publication Date: 2016
• Subjects: optimisation -- inventory modelling -- inventory management -- time-dependent demand -- exponential holding cost -- EOQ model -- economic order quality -- differential calculus -- order cycle -- cycle time -- inventory cost; Operations research -- Mathematical models -- Periodicals; Operations research -- Mathematics -- Periodicals; Decision making -- Mathematical models -- Periodicals; 658.4033
• Languages: English
• ISSNs: 1757-5850

Abstract

In real life observation demand rate depends on time. In this paper demand rate is considered as linearly time dependent and holding cost is exponentially time dependent for case I and time dependent for case II. Previous models considered that demand rate as well as holding cost both being constant. To stimulate more sales the demand rate is not constant but it is time-dependent, stock dependent, inflation dependent, cash discount etc. Differential calculus is used for finding optimal order cycle, optimal cycle time, optimal total inventory cost for both cases (i.e., case I and case II). Sensitivity analysis is given for the variation of various parameters for both cases.