Title: An economic order quantity model with demand-dependent unit cost
Abstract: For the classical EOQ problem a relationship between demand and unit cost may exist under certain circumstances. We propose an EOQ model with demand-dependent unit cost and formulate the optimization problem as a geometric program (GP). We solve the GP analytically to obtain a closed-form optimal solution. An illustrative example is provided to show the working procedures of applying GP to solve a given problem. We also touch on some aspects of sensitivity analysis based on the GP approach. We demonstrate in this paper the point that GP has potential as a viable mathematical tool for the analysis of a certain class of inventory control problems.
Publication Year: 1989
Publication Date: 1989-05-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 78
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