Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
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Comparative Analysis of Two EOQ based Inventory Models

EOQ 기반 재고 모델의 비교 분석

  • Jung, Hoon (Postal Technology Research Center, Electronics and Telecommunications Research Institute)
  • 정훈 (한국전자통신연구원 우정기술연구센터)
  • Published : 2005.09.30
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Abstract

In this paper, we compare two EOQ based inventory models under total cost minimization and profit maximization to investigate the difference in the optimal solutions. First of all, optimal solutions for both models through geometric programming (GP) techniques are found considering production (lot sizing) as well as marketing (pricing) decisions. An investigation of the effects of the changes in the optimal solutions according to varied parameters is performed by studying optimality conditions as well as by performing numerical analysis. We then conduct comparative analysis between the models to show the relationships between the optimal solutions of the models where certain conditions in the cost per unit and the demand per unit time are given. Several interesting economic implications and managerial insights are observed from this analysis.

Keywords

References

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