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Multi-Item EOQ Model with Both Demand-Dependent Unit Cost and Varying Leading Time via Geometric Programming
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Abstract
The objective of this paper is to derive the analytical solution of the EOQ model of multiple items with both demand-dependent unit cost and leading time using geometric programming approach. The varying purchase and leading time crashing costs are considered to be continuous functions of demand rate and leading time, respectively. The researchers deduce the optimal order quantity, the demand rate and the leading time as decision variables then the optimal total cost is obtained.
KeywordsInventoryGeometric ProgrammingLeading TimeDemand-DependentEconomic Order Quantity
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