scholarly journals An EOQ Model for Phase Inventory with Induced Demand and Periodic Cycle Time

2014 ◽  
Vol 2014 ◽  
pp. 1-14 ◽  
Author(s):  
Sujit Kumar De ◽  
Shib Sankar Sana ◽  
Adrijit Goswami
Keyword(s):  
Cycle Time ◽  
Optimal Order ◽  
Inventory Problem ◽  
Setup Cost ◽  
Inventory Cost ◽  
Induced Demand ◽  
Eoq Model ◽  
Demand Rate ◽  
Second Shift ◽  
Stock Flow

This paper deals with a stock flow of an inventory problem over induced demand. The inventory is consumed through “core customer” or chain marketing system in an induced environment (inductance) to exhaust all the items of the stock inventory in an indefinite time. The demand rate is depicted due to induced factor which is generated from the same inventory presented nearby. The inventory cycle time is split into several periodic times due to oscillatory feature of the inventory which is called phase inventory. Considering uniform demand, this cycle time splits into two basic parts, namely, “first shift” (phase) and “second shift” (phase). Since the process dampens over time, so the whole inventory will exhaust after few periods. A cost function consisted of inventory cost, setup cost, and loss for induced items is minimized to obtain optimal order quantity and replenishment time. The multivariate lagrange interpolation (MLI) over the average values of the postsensitivity analysis is developed here. Finally, graphical illustrations are made to justify the model.

Retailer’s Pricing and Lot Sizing Policy for Non Deteriorating Items with Constant Demand Rate Under the Condition of Permissible Delay in Payments

2012 ◽  
Vol 3 (1) ◽  
pp. 74-84
Author(s):  
R. P. Tripathi ◽  
S. S. Misra
Keyword(s):  
Cycle Time ◽  
Lot Sizing ◽  
Deteriorating Items ◽  
Lot Size ◽  
Credit Period ◽  
Eoq Model ◽  
Develop Algorithm ◽  
Net Profit ◽  
Demand Rate ◽  
Delay In Payments

This study develops an EOQ model for retailer’s price and lot size simultaneously when the supplier permits delay in payments for an order of a product whose demand rate is a constant price elastic function for non-deteriorating items. In this study, mathematical models have been discussed under two different situations, i.e., case I: The credit period is less than or equal to cycle time for setting the account; and case II: The credit period is greater than the cycle time for setting the account. Expressions for an inventory system’s net profit are derived for these two cases. The authors develop algorithm for a retailer to determine its optimal price and lot size simultaneously, when supplier offers a permissible in payments.

scholarly journals Ordering Strategy Analysis of Prefabricated Component Manufacturer in Construction Supply Chain

2018 ◽  
Vol 2018 ◽  
pp. 1-16 ◽  
Author(s):  
Hongxiong Yang ◽  
Jacky K. H. Chung ◽  
Yuhong Chen ◽  
Yifan Pan ◽  
Zhiling Mei ◽  
...  
Keyword(s):  
Supply Chain ◽  
Fitness Function ◽  
Construction Material ◽  
Optimal Order ◽  
Cost Models ◽  
Inventory Cost ◽  
Strategy Analysis ◽  
Individual Fitness ◽  
Eoq Model ◽  
The Individual

Firstly, the characteristics and present situations of the prefabricated construction supply chain are analyzed; inventory cost models for construction material of every phase order, one-off order, and fractionated order are built based on traditional EOQ model and construction supply chain theory. Next, the order decision is represented in binary numbers 0 and 1, in which 0 stands for “no order” and 1 for “order.” The analysis uses the genetic algorithm, sets the objective function, and undergoes testing and assessing the individual fitness function, encoding, decoding, crossover, mutation, and selecting parameter. Moreover, inventory cost of construction supply chain is processed and optimized in Matlab. The research establishes a research paradigm on supply chain management of component manufacturing and materials supply. This study concludes the ordering strategy on construction material, identifies the optimal order points and order batches, and provides recommendations for further research.

A FLUID EOQ MODEL WITH A TWO-STATE RANDOM ENVIRONMENT

2006 ◽  
Vol 20 (2) ◽  
pp. 329-349 ◽  
Author(s):  
Oded Berman ◽  
David Perry ◽  
Wolfgang Stadje
Keyword(s):  
Random Environment ◽  
Classical Problem ◽  
Type Model ◽  
Expected Number ◽  
Setup Cost ◽  
Eoq Model ◽  
Demand Rate ◽  
Markovian Random Environment ◽  
Holding Cost ◽  
Stochastic Fluid

We study a stochastic fluid EOQ-type model operating in a Markovian random environment of alternating good and bad periods determining the demand rate. We deal with the classical problem of “when to place an order” and “how big it should be,” leading to the trade-off between the setup cost and the holding cost. The key functionals are the steady-state mean of the content level, the expected cycle length (which is the time between two large orders), and the expected number of orders in a cycle. These performance measures are derived in closed form by using the level crossing approach in an intricate way. We also present numerical examples and carry out a sensitivity analysis.

The Comparative Study of EOQ Newsboy and Silver-Meal Method for SMEs Business

2014 ◽  
Vol 1044-1045 ◽  
pp. 1807-1811
Author(s):  
Lakkana Ruekkasaem
Keyword(s):  
Optimal Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Eoq Model ◽  
Proper Number ◽  
Newsboy Model ◽  
Optimal Order Quantity ◽  
The Comparative Study ◽  
Ordering Quantity

This study was conducted to determine an appropriate model to be used so that a cleanroom equipment company will be able to order a proper number of various types of products to serve the demand of customers at different periods of time. The case study had high inventory cost due to the fact that it could not order goods accordingly. The research compared the efficiency of Economic Ordering Quantity (EOQ), Newsboy Model and Silver-Meal Method to find the optimal order quantity model for this company. The results of the study indicated that the EOQ model (in case allowing for some inventory shortage) obtained the least inventory cost.

scholarly journals A Study of an EOQ Model of Growing Items with Parabolic Dense Fuzzy Lock Demand Rate

2021 ◽  
Vol 4 (4) ◽  
pp. 81
Author(s):  
Suman Maity ◽  
Sujit Kumar De ◽  
Madhumangal Pal ◽  
Sankar Prasad Mondal
Keyword(s):  
Fuzzy Set ◽  
Order Quantity ◽  
Inventory Cost ◽  
Eoq Model ◽  
Fuzzy Environment ◽  
Demand Rate ◽  
Total Inventory ◽  
Growing Items ◽  
Graphical Illustration ◽  
The Ideal

In this article, the parabolic dense fuzzy set is defined, and its basic arithmetic operations are studied with graphical illustration. The lock set concept is incorporated in a parabolic dense fuzzy set. Then, it is applied to the problems of fishery culture via the modeling of an economic order quantity model. Here, the fingerlings are fed to reach the ideal size to fulfill the customer’s demand. The growth rate of the fingerlings is assumed as a linear function. After the sales of all fish, the pond is cleaned properly for a new cycle. Here, the model is solved in a crisp sense first. Then, we fuzzify the model considering the demand rate as a parabolic dense lock fuzzy number and obtain the result in a fuzzy environment. The main aim of our study was to find the quantity of the ordering items such that the total inventory cost gets a minimum value. Lastly, sensitivity analysis and graphical illustrations were added for better justification of our model.

EOQ Model with Stock-Level Dependent Demand and Different Holding Cost Functions

2017 ◽  
Vol 8 (4) ◽  
pp. 59-75 ◽  
Author(s):  
H.S. Shukla ◽  
R.P. Tripathi ◽  
Neha Sang
Keyword(s):  
Order Approximation ◽  
Optimal Solution ◽  
Optimal Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Stock Level ◽  
Numerical Examples ◽  
Eoq Model ◽  
Holding Cost ◽  
Dependent Demand

This paper presents EOQ (Economic Order Quantity) model with stock- level dependent demand and different types of holding cost function. We show that the total relevant inventory cost per unit time is convex with respect to cycle time. Mathematical models are established to determine optimal order quantity and total relevant inventory cost. Numerical examples are provided for two different models i.e. (i): Instantaneous replenishment with inventory dependent holding cost and (ii) Instantaneous replenishment with quadratic time dependent carrying cost. Numerical examples are provided to illustrate the proposed model. Sensitivity analysis of the optimal solution with respect to the parameters of the system is carried out. The second order approximation is used for finding closed form optimal solution. Mathematica 5.2 software is used to find numerical results.

scholarly journals A Price-Dependent Demand Model in the Single Period Inventory System with Price Adjustment

2013 ◽  
Vol 2013 ◽  
pp. 1-9 ◽  
Author(s):  
Kamran Forghani ◽  
Abolfazl Mirzazadeh ◽  
Mehdi Rafiee
Keyword(s):  
Optimal Order ◽  
Selling Price ◽  
Inventory Problem ◽  
Demand Model ◽  
Inventory Costs ◽  
Single Period ◽  
Proposed Model ◽  
Demand Rate ◽  
Total Inventory ◽  
Dependent Demand

The previous efforts toward single period inventory problem with price-dependent demand only investigate the optimal order quantity to minimize the total inventory costs; however, there is no method in the literature to avoid unwanted costs due to the deviation between the actual demand and the previously estimated demand. To fill this gap, the present paper supposes that stochastic demand rate with normal distribution is sensitive to the selling price; this means that increasing the selling price would decrease the demand rate and vice versa. After monitoring the consumption trend within a section of the period, a new selling price is implemented to change the demand rate and reduce the shortage or salvage costs at the end of the period. Three functions were suggested to represent the demand rate as a function of selling price, and the numerical analysis was implemented to solve the proposed problem. Finally, an illustrative numerical example was solved for different configurations in order to show the advantages of the proposed model. The results revealed that there is a significant improvement in the system costs when price revision is considered.

scholarly journals Optimal Price and Lot Size for an EOQ Model with Full Backordering under Power Price and Time Dependent Demand

Mathematics ◽  
2021 ◽  
Vol 9 (16) ◽  
pp. 1848
Author(s):  
Luis A. San-José ◽  
Joaquín Sicilia ◽  
Manuel González-de-la-Rosa ◽  
Jaime Febles-Acosta
Keyword(s):  
Lot Sizing ◽  
Optimal Solution ◽  
Selling Price ◽  
Inventory Problem ◽  
Lot Size ◽  
Power Functions ◽  
Eoq Model ◽  
Demand Rate ◽  
Parameter Values ◽  
Dependent Demand

In this paper, we address an inventory system where the demand rate multiplicatively combines the effects of time and selling price. It is assumed that the demand rate is the product of two power functions, one depending on the selling price and the other on the time elapsed since the last inventory replenishment. Shortages are allowed and fully backlogged. The aim is to obtain the lot sizing, the inventory cycle and the unit selling price that maximize the profit per unit time. To achieve this, two efficient algorithms are proposed to obtain the optimal solution to the inventory problem for all possible parameter values of the system. We solve several numerical examples to illustrate the theoretical results and the solution methodology. We also develop a numerical sensitivity analysis of the optimal inventory policy and the maximum profit with respect to the parameters of the demand function.

scholarly journals Inventory Level Improvement in Pharmacy Company Using Probabilistic EOQ Model and Two Echelon Inventory: A Case Study

2020 ◽  
Vol 13 (3) ◽  
pp. 229-242
Author(s):  
Desy Anisya Farmaciawaty ◽  
◽  
Mursyid Hasan Basri ◽  
Akbar Adhi Utama ◽  
Fransisca Budyanto Widjaja ◽  
...  
Keyword(s):  
Inventory Management ◽  
Lead Time ◽  
Inventory Level ◽  
Setup Cost ◽  
Inventory Cost ◽  
Decentralized System ◽  
Class A ◽  
Eoq Model ◽  
Holding Cost

Abstract. This research is aimed to maintain the inventory level in a two-echelon pharmacy company. The company is a pharmacy company that has 16 branches that operate in Bandung and the surrounding area. The company has a problem with its high inventory cost. To solve the problem, the authors compare two methods that suit the company condition, i.e., the decentralized system using probabilistic EOQ model and the centralization system using the multi-echelon inventory technique. We analyzed sales data and on-hand inventory data acquired from the company information system to perform the study. We limit the scope to the class A items only. We also assume the lead time, setup cost, and holding cost used in this study with the company's owner's consent. To conclude, using the decentralized system, the company will save 31% of their inventory cost, while using the centralization system with the multi-echelon technique, the company will be able to save 61% of their inventory cost. We recommend the company to refer to its competitive strategy before deciding which model it would be implemented. Keywords: Centralization, Decentralization, Probabilistic Economic Order Quantity (EOQ), Multi-Echelon Inventory, Pharmaceutical Inventory Management

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