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A Comparison of EOQ and OMMIP in which Inventory Cost is due to Holding Cost as a Fraction of Unit Cost  

Oh, Sae-Kyung (Division of Advanced Industrial Engineering, Kyonggi University)
Kim, Dong-Ki (Division of Advanced Industrial Engineering, Kyonggi University)
Choi, Jin-Yeong (Division of Advanced Industrial Engineering, Kyonggi University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.31, no.2, 2008 , pp. 43-50 More about this Journal
Abstract
In this paper we suggest the methods that compute the total inventory cost based on EOQ and the total inventory cost based on OMMIP. The total inventory cost consists of purchasing cost, ordering cost, inventory holding cost, stockout cost and so on. This papers also proposes the method that decides optimum order quantity as the order amount to minimize the total inventory cost with comparison of EOQ total inventory cost and OMMIP total inventory cost according to inventory holding cost as a fraction of unit cost.
Keywords
OMMIP(Order Quantity at Minimized Mean Inventory Period); EOQ; Holding Cost; Inventory Cost;
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Times Cited By KSCI : 1  (Citation Analysis)
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