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Implementation of optimum inventory model for deteriorating items with economic purchasing strategy
, E. Chandrasekeran, C. Vijayalakshmi
Published in Research India Publications
2014
Volume: 9
   
Issue: 24
Pages: 25905 - 25917
Abstract
In this paper, Economic Order Quantity (EOQ) model with a discounted price are developed to obtain the optimal ordering policy during the sale period for five different cases. Each case has its own characteristics of the sale period and the discounted price. The objective of the inventory model is to take the maximum possible advantage from the discounted price by ordering a special quantity during the sale period. The optimal ordering policy is obtained by maximizing the difference between the two costs such as Regular EOQ cost and Special quantity cost during the same period. This analysis extends the logic to a composite EOQ model that can be disaggregated into a family of hybrid models with broader operational flexibility. Numerical calculations are provided to illustrate and testify the values of the optimal special quantity. Based on the numerical calculations it reveals the fact that there is an effectiveness improvement in the inventory system when a special order is placed during the sale period. © Research India Publications.
About the journal
JournalInternational Journal of Applied Engineering Research
PublisherResearch India Publications
ISSN09734562