An EOQ Model When Quantity Received Uncertain With Planned Shortages and Equivalent Holding Cost and Shortages Cost

Vol-4 | Issue-03 | March 2019 | Published Online: 13 March 2019    PDF ( 619 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 deterministic inventory classical EOQ model, here assumed that the lead time is fix and the quantity which received uncertain and the planned shortages with equivalent holding beside shortages cost. The basic EOQ model extends above satisfies the determination to manage problem as much as possible. Beside the backorders are filled immediately. In this paper order quantity depend upon maximum and average inventory. an EOQ model is define by minimize total cost of an inventory, additionally provide a numerical example with simple EOQ formula and also show the effect of backorder on quantity with appropriate graph.

Keywords
EOQ, back-ordering, Shortage cost, equivalent holding cost and shortage cost, quantity received uncertain
Statistics
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