Optimum Decision-Making Process for an Economic Order Quantity (EOQ) Model with Budget and Floor Space Constraints
[1]
Monalisha Pattnaik, Dept. of Business Administration, Utkal University, Bhubaneswar, India.
This paper considers a Single item economic order quantity (EOQ) model with budget and floor space constraints where unit cost of production is depending with demand and variable setup cost. This paper presents the modification of objective function, with limited capital investment and limited storage area in the presence of estimated parameters. The model is developed for the problem by employing Non Linear Programming modeling approaches over an infinite planning horizon. It incorporates all concepts of crisp arithmetic approach, the quantity ordered, the demand per unit and compares with other model that of the crisp would optimal ordering policy of the problem over an infinite time horizon is also suggested. Investigation of the properties of an optimal solution allows developing an algorithm for obtaining solution through LINGO 13.0 version whose validity is illustrated through an example problem. Furthermore, sensitivity analysis of the optimal solution is studied with respect to changes in different parameter values.
Single Item, EOQ, Variable Setup Cost, Budget, Floor Space
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