O P T I M I Z I N G T H E E P Q M O D E L W I T H D I S C R E T E D E L I V E R Y O R DERS
Author(s):
Abstract:
Similar to the other existing classical production and inventory control models, the Economic Production Quantity (EPQ) model has been derived, based upon some assumptions that cause its limited real-world applications. One of the assumptions in this model is that the orders are delivered at a continuous and constant rate. In order to make the EPQ model more applicable to real-world production and inventory control problems, in this paper, this model is expanded by assuming that the orders may be delivered discretely in the form of multiple pallets. Under this condition, the EPQ costs are calculated and a new model is developed to find the optimum value of the economic order quantity. Then, an optimal solution algorithm is proposed and a numerical example is presented to demonstrate the application of the proposed methodology.
Keywords:
Language:
Persian
Published:
Sharif, Volume:25 Issue: 49, 2009
Page:
101
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