Here, we study an Economic Order Quantity (EOQ) model with temporary price discount, defective items and limited warehouse capacity. We intend to investigate a situation in retailer system in which the supplier offers a temporary discount. The retailer's ware house capacity is limited then there ia an opportunity to rent additional warehause. We also consider a condition where lot of product transfer from supplier to buyer contains some defective products. The model is developed to help the retailer to decide whether to adopt a special or reguler replenishment policy during a temporary sales period. This model provides an optimal solution by maximizing the total inventory cost savings. A numerical example is presented to illustrate the application of the model.
EOQ model considering imperfect product, temporary discount, and limited warehouse capacity
2015-11-01
392821 byte
Conference paper
Electronic Resource
English
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