Article ID: | iaor2007556 |
Country: | Netherlands |
Volume: | 171 |
Issue: | 1 |
Start Page Number: | 255 |
End Page Number: | 272 |
Publication Date: | May 2006 |
Journal: | European Journal of Operational Research |
Authors: | Berman Oded, Perry David |
Keywords: | economic order |
We present an EOQ-type model in which the demand rate is a function of the inventory level. The demand functions and holding cost functions considered are quite general. In particular, we focus on two types of demand rate functions: a piecewise constant function and a family of exponential functions. The paper includes analysis of the problem, optimization and sensitivity analysis. We also extend the model by adding randomness to the order sizes.