EOQ Models with Varying Holding Cost

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 al...

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Bibliographic Details
Published inJournal of Industrial Mathematics Vol. 2013; no. 2013; pp. 1 - 7
Main Authors Ghasemi, Naser, Afshar-Nadjafi, Behrouz
Format Journal Article
LanguageEnglish
Published Cairo, Egypt Hindawi Puplishing Corporation 30.05.2013
Hindawi Publishing Corporation
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Summary: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.
ISSN:2314-8853
2314-6117
DOI:10.1155/2013/743921