Economic Order Quantity Model for Growing Items with Incremental Quantity Discounts, Capacitated Storage Facility, and Limited Budget

The development of the inventory model started when Harris introduced classic model. It was firstly published by Wilson using optimization method. He derived a mathematical equation to obtain economic order quantities. Later, this is known as Economic Order Quantity (EOQ) or Model. EOQ has some limitations. assumed that items do not have physical changes during planning period. This assumption becomes weakness classical Many material period, such amelioration, deterioration, and growth. research proposed new relaxes three implicit assumptions EOQ: (1) ordered grow; (2) unlimited capacity; (3) budget. A solution procedure solve developed illustrated with numerical example. example performed compare result between reference number per cycle time increased 7%, 28%. because tends choose large purchased quantities get cheap price. caused be larger smaller than also provided sensitivity analysis. showed response decision variables in input parameters.