A DISCRETE-TIME ECONOMIC ORDER QUANTITY MODEL FOR AMELIORATING ITEMS WITH CONSTANT DEMAND AND LINEAR HOLDING COSTS
DOI:
https://doi.org/10.33003/fjs-2026-1001-3913Keywords:
Economic Order Quantity, Ameliorating items, Constant Demand, Linear Holding Cost, Discrete timeAbstract
This paper presents the development of a discrete time economic order quantity model with constant demand and linear holding cost for ameliorating items where shortages are not allowed and this is a generalization of GWANDA (2018) In the study, the items are assumed to undergo immediate amelioration upon arrival in stock. The purpose is to determine the optimal ordering quantity and replenishment cycle so as to minimize the total variable cost. It is a generalization of an analysis of ameliorating items under constant demand by taking time to be discrete and holding cost linear. A mathematical expression representing the instantaneous inventory level at an arbitrary time t with the cycle period T, are solved utilizing a difference equation subject to initial and boundary conditions. Numerical example has been demonstrated to validate the model and sensitivity analysis conducted to determine the impact of parameter variations.
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