The Decision Making Model Of The EOQ Model

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Introduction: EOQ model are used as a decision making tool for the control of inventory. In classical inventory models the demand rate is assumed to be constant or time- dependent. The EOQ model assumes the retailer’s must be paid for the items as soon as the items are received. However, the supplier will offer the retailer’s delay period in paying for the amount of purchasing cost. Before the end of this period, the buyer can sell the items and accumulate revenue and earn interest. A higher interest is charged if the payment is not settled by the end of permissible delay period.
Goyal [7] developed economic order quantity under conditions of permissible delay in payments and he obtained total variable cost. Chung [2] simplified the search …show more content…

Tripathi [6] determined the optimal pricing and ordering policy for inflation dependent demand rate under permissible delay in payments in which demand rate is inflation dependent with respect to time. Tripathi and Mishra [26] developed credit financing in economic ordering policies of non-deteriorating items with time-dependent demand rate by considering three different cases. Tripathi and Kumar [27] also discussed credit financing in economic ordering policies of time-dependent deteriorating items by considering three different situations. Mishra et al. [15] developed an inventory model for weibull deteriorating items with permissible delay in payments under inflation by considering inflation dependent parameters i.e. instantaneous selling price per unit and instantaneous ordering cost per order etc. Meher et al. [16] proposed an economic order quantity based model for deteriorating items with weibull deterioration in a declining market when the supplier offers a permissible delay in payments to the retailer to settle the account against the purchases. Tripathi and Mishra [28] developed an inventory model with time-dependent weibull demand rate where shortages are allowed and the production rate is finite and proportional to the demand rate. Valliathal and Uthayakumar [29] discussed the effects of inflation and time discounting on an EOQ model for deteriorating items under stock-dependent demand and time-dependent partial backlogging. Mandal and Phaujdar [17] proposed an inventory model for deteriorating items and stock-dependent consumption rate. Su et al. [24] have investigated it. More investigations can be found in Khanra [13], Roy and Chaudhari [19], Soni and Shah [25], Yang et al. [30] and Padmanabham and Vrat [18]. Recently Shukla .H.S, Vivek shukla and Sushil kumar yadav., [23]determined optimal pricing and ordering

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