EOQ MODELS WITH GENERAL DEMAND AND HOLDING COST-FUNCTIONS

We consider the continuous, deterministic, infinite horizon, single it em inventory system, within the setting of a retail sector, in which t he demand rate for an item is dependent on the existing inventory leve l. The traditional parameter of the replenishment cost is kept constan t but the carrying cost per unit is allowed to vary. Two possibilities of variation are considered: (a) a non-linear function of the length of time the item is held in inventory and (b) a non-linear function of the amount of on-hand inventory. We find the optimal policies and dec ision rules and show that the classical EOQ model is obtained as a lim iting case.