O. Fujiwara et Uljsr. Perera, EOQ MODELS FOR CONTINUOUSLY DETERIORATING PRODUCTS USING LINEAR AND EXPONENTIAL PENALTY COSTS, European journal of operational research, 70(1), 1993, pp. 104-114
Citations number
16
Categorie Soggetti
Management,"Operatione Research & Management Science
We present EOQ models for perishable products which consider continuou
s deterioration of the utility of a product and introduce an exponenti
al penalty cost function as a measurement of the utility deterioration
. The approach proposed is simple and can be used to obtain easily the
closed forms of the economic order quantities, which have not previou
sly been derived. These forms describe the effect of the penalty cost
clearly and are a natural extension of economic order quantities for n
on-perishable products. Our results are shown to be consistent with re
ported EOQ models with exponential decay but derived more elaborately.
Our approach has the added advantage that it can be easily extended t
o the economic lot scheduling problem for multi-item perishable produc
ts.