Title: EOQ models for deteriorative items with constant, linear and quadratic holding cost and shortages - a comparative study

Authors: P. Selvaraju; S. Kumara Ghuru

Addresses: RVS College of Engineering and Technology, Coimbatore 641-402, India ' Chikkanna Government Arts College, Tirupur 641-602, India

Abstract: In the classical inventory model the holding cost was assumed to be constant. However, in reality, holding cost may not always be constant. The holding cost may be time dependent. In this paper, a production inventory model with deteriorating items with constant, linear and quadratic holding cost is considered and also a comparative study is carried out between constant, linear and quadratic holding costs. Three models are developed. In three models, the optimum time and total cost are derived when the holding cost is: 1) constant; 2) linear; 3) quadratic. A mathematical model is developed for each model and the optimal production lot size which minimises the total cost is derived. The optimal solution is derived and an illustrative example is provided. The validation of result in this model was coded in Microsoft Visual Basic 6.0.

Keywords: inventory; deteriorating; linear; quadratic; holding cost; demand and production.

DOI: 10.1504/IJOR.2018.096487

International Journal of Operational Research, 2018 Vol.33 No.4, pp.462 - 480

Received: 25 Sep 2015
Accepted: 19 Dec 2015
Published online: 05 Dec 2018 *

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