EOQ Models with Varying Holding Cost. (30th May 2013)

• Record Type: Journal Article
• Authors: Ghasemi, Naser; Afshar Nadjafi, Behrouz
• Other Names: Chen Ting Academic Editor.
• Is Part Of: Journal of industrial mathematics. Volume 2013(2013)
• Publication Date: 2013-05-30
• Subjects: Engineering mathematics -- Industrial applications -- Periodicals; Engineering mathematics -- Industrial applications; Periodicals; 620.00151
• DOI: 10.1155/2013/743921
• Languages: English
• ISSNs: 2314-8853

Abstract

Abstract : Models of inventory management contain different parameters. An issue is observable in the classical models which can be related to the determination of the quantity of the economic order and the quantity of the economic production. In these models, the parameters like setup and holding costs and also the rate of demands are fixed. This matter causes the quantity of the economic ordering in classic model to have some differences in comparison with the real-world conditions. It should be stated that holding cost of spoiled and useless products is not always fixed and so the costs increase by passing the time. This paper is an attempt to develop classical EOQ models by considering holding cost as an increasing function of the ordering cycle length. So the classical EOQ models are developed, and the related optimum quantity to the ordering cycle length, economic ordering quantity, and the optimum total cost are determined.