The classic Economic Order Quantity model assumes that the unit purchasing cost is not based on the order quantity. In practice, a supplier may offer purchasers an all-units discount. We develop a model and solution procedure for the EOQ with all-unit discounts and partial backordering at a constant rate. We show, and illustrate with a numerical example, how that model can be used to find the s...

The Economic Order Quantity (EOQ) problem is a fundamental problem in supply and inventory management. In its classical setting, solutions are not affected by the warehouse capacity. We study a type of EOQ problem where the (maximum) warehouse capacity is a decision variable. Furthermore, we assume that thewarehouse cost dominates all the other inventory holding costs. We call this the EOQ-Max ...

In this paper, we address the problem of deciding the optimal ordering quantity and frequency for a supplier– retailer logistic system in which the transportation cost as well as the multiple uses of the vehicles are considered. Based on the traditional economic order quantity (EOQ) formula, a modified EOQ model is set up and an algorithm for the model is presented. Computational results verify...

a r t i c l e i n f o The optimal replenishment policy for an economic production quantity (EPQ)-based inventory model with nonconforming items and breakdown is presented. A real-life production system inevitably generates nonconforming items and has equipment breakdowns owing to process deterioration or other uncontrollable factors. This study addressed these issues in an EPQ-based system to o...

We consider a single-echelon inventory installation under the classical EOQ (with backorders) paradigm to study the effects of supply quality on cost performance. Previous research on imperfect supply quality has focused on variants of the proportional (deterministic or random) yield problem, where supply batches are all accepted and then used, after screening any defects. In this paper we stud...

Traditionally, inventory management experts have calculated a fixed economic order quantity (EOQ) that minimizes the cost of ordering and keeping stock. Some organizations use fixed maximum and minimum order quantity (MOQ) which ranges around EOQ for stocking various parts. These quantities are ordered at a specific stock level called the reorder point. The reorder point is calculated as the st...

In the present paper we investigate a EOQ model for imperfect items under time variable linear demand. The defective items is being screened out by a 100 % screening process and then sold in a single batch by the end of the 100% screening process with a salvage price. The unsold perfect item during the cycle is sold at a different salvage price at the end of cycle. Two different types for cost ...