An EOQ model when quantity received uncertain under permissible delay in payment with planned shortages and equivalent holding cost and shortages cost

Vol-4 | Issue-03 | March 2019 | Published Online: 13 March 2019    PDF ( 614 KB )
Author(s)
Raina Pandya 1; Chirag J Trivedi 2

1Research scholar, statistic Department, Gujarat University, Ahmedabad(India)

2Head & Associate professor, statistic Department, R.J.Tibrewal Commerce College, Ahmedabad (India)

Abstract

In this article, an attempt is made to derive new inventory model with equivalent holding and shortages cost, under the planned expected shortages of quantity and delay in payment for inventory when quantity received is uncertain. The sensitivity analysis to study interdependence of parameters on the decision variables and objective function for derived model is explain by hypothetical numerical illustration.

Keywords
EOQ, uncertain quantity, delay in payments, equivalent holding and shortages cost, planned shortages.
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