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Optimizing the economic production quantity model with discrete delivery orders

Pasandideh, S. H. R ; Sharif University of Technology | 2010

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  1. Type of Document: Article
  2. Publisher: 2010
  3. Abstract:
  4. Similar to other existing classical production and inventory control models, the economic production quantity (EPQ) model is 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 in a continuous and constant rate. In order to make the EPQ model more applicable to real-world production and inventory control environments, in this research, an EPQ model is considered in which the orders are delivered discretely in the form of multiple pallets. Under this condition, the EPQ costs are derived and a new model is developed to find the optimum values of both the economic order quantity and the reorder point. Then, an optimal solution algorithm is proposed and a numerical example is presented to demonstrate the application of the proposed methodology
  5. Keywords:
  6. EPQ ; Multiple discrete deliveries ; Optimization
  7. Source: Economic Computation and Economic Cybernetics Studies and Research ; Volume 44, Issue 2 , 2010 , Pages 49-62 ; 0424267X (ISSN)