| Article ID: | iaor20023555 |
| Country: | China |
| Volume: | 18 |
| Issue: | 3 |
| Start Page Number: | 70 |
| End Page Number: | 74 |
| Publication Date: | Sep 2001 |
| Journal: | Mathematics in Economics |
| Authors: | Mao Xiaoli |
| Keywords: | deteriorating items |
The inventory problems solved by classical economic order quantity models all treat the holding cost as constant. In this paper, two possibilities of variation of the holding cost per unit are considered: (a) a function of length of time the item is held in inventory and (b) a function of length of the amount of on-hand inventory. The effect of the variation for holding cost on the optimal order policies of inventory system is shown.