Determination of EOQ of Multi-Item inventory Problems through nonlinear Goal Programming with penalty Function

This paper describes how the proper priority structure of non-linear goal programming (NLGP) model can be selected for obtaining economic order quantity(EOQ) of multi-item inventory problems. In the solution process, sensitivity analysis of the priority under the given weight structure of goals has been performed. A set of solution is obtained. From the solutions, the ideal solution is identified. The D1-distances of different solutions from the ideal solution are calculated. The solution corresponding to the minimum D1-distance gives the best compromise solution. Finally, a case study demonstrates the applicability of the proposed technique.