An economic order quantity model with screening errors, returned cost, and shortages under quantity discounts

2011 ◽  
Vol 5 (4) ◽  
pp. 1129-1135 ◽  
Author(s):  
Tien-Yu Lin ◽  
Ming-Te Chen
Keyword(s):  
Economic Order Quantity ◽  
Economic Order ◽  
Quantity Discounts ◽  
Order Quantity ◽  
Screening Errors

scholarly journals Economic Order Quantity Model for Growing Items with Incremental Quantity Discounts, Capacitated Storage Facility, and Limited Budget

2020 ◽  
Vol 22 (1) ◽  
pp. 1-10
Author(s):  
Yosi Agustina Hidayat ◽  
Veterina Nosadila Riaventin ◽  
Okky Jayadi
Keyword(s):  
Cycle Time ◽  
Reference Model ◽  
Optimization Method ◽  
Inventory Model ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Quantity Discounts ◽  
Order Quantity ◽  
Planning Period ◽  
Numerical Example

The development of the inventory model started when Harris introduced the classic inventory model. It was firstly published by Wilson using the optimization method. He derived a mathematical equation model to obtain economic order quantities. Later, this model is known as the classic Economic Order Quantity (EOQ) or Wilson Model. The classic inventory EOQ model has some limitations. The model assumed that order items do not have physical changes during a planning period. This assumption becomes the weakness of the classical EOQ inventory model. Many items have material changes during a planning period, such as amelioration, deterioration, and growth. This research proposed a new mathematical model. The model relaxes three implicit assumptions of the classical EOQ: (1) the ordered items do not grow; (2) unlimited capacity; and (3) unlimited budget. A solution procedure to solve the model was developed and illustrated with a numerical example. A numerical example was performed to compare the result between the reference model and the new model. The number of ordered items per cycle time increased by 7%, and cycle time increased by 28%. It increased because the proposed model tends to choose large purchased quantities to get a cheap price. It caused the number of ordered items per cycle time to be larger and the cycle time to be smaller than the reference model. This research also provided sensitivity analysis. It showed the response of decision variables to some changes in input parameters.

scholarly journals Impact of Logistic Processes on Economic Order Quantity with Quantity Discount: An Optimization Approach

2020 ◽  
pp. 44-52
Author(s):  
Ágota Bányai ◽  
Béla Illés ◽  
Zhumatayeva Gaziza ◽  
Tamás Bányai ◽  
Péter Tamás
Keyword(s):  
Inventory Management ◽  
Optimal Solution ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Optimization Approach ◽  
Quantity Discounts ◽  
Order Quantity ◽  
Logistics System ◽  
Materials Handling ◽  
Transportation Capacity

Inventory processes have significant importance in a company's logistics system and greatly influences its economic operation. Inventory management systems are used in the case of both dependent and independent products. The most used inventory model is the computation of economic order quantity model, which can be used in various types of objective functions and constraints. Logistic processes and their materials handling operations have a great impact on the optimal solution of economic order quantity problems, therefore it is important to consider logistic aspects while using EOQ. Within the frame of this article the authors describe a model considering available storage and transportation capacity, while fixed order lots as size of loading units and quantity discounts are taken into consideration. Two scenarios are discussed to validate the model and highlight the importance of logistics related constraints in computation of economic order quantity.

ANALISA SISTEM PERSEDIAAN BAHAN BAKU PADA INDUSTRI BINTANG PRIMA ACEH BESAR

2020 ◽  
Vol 8 (1) ◽  
Author(s):  
Chairul Amni
Keyword(s):  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity

Perencanaan persediaan bahan baku merupakan salah satu peranan yang sangat penting dalam dunia industri untuk meningkatkan permintaan pasar. Sebuah perencanaan produksi akan berjalan dengan baik jika di dukung dengan adanya persediaan bahan baku yang memadai. Persediaan bahan baku juga memberikan kontribusi biaya yang cukup besar sehingga komponen biaya ini juga perlu untuk dikendalikan. Melihat pentingnya fungsi perencanaan produksi dan pengendalian persediaan bahan baku, maka perlu adanya usaha untuk mengelolanya secara efisien untuk mendapatkan hasil yang optimal. Perencanaan bahan baku merupakan hal yang sangat penting dilakukan untuk mendukung proses produksi, sehingga tidak terjadi masalah seperti keterlambatan pengiriman barang kepada konsumen, dan pemborosan biaya bahan baku. Tujuan dari penelitian ini adalah untuk mengetahui sistem pengendalian bahan baku yang diterapkan serta untuk mengetahui jumlah ekonomis bahan baku pada setiap kali pemesanan yang di analisis dengan menggunakan metode EOQ (Economic Order Quantity). Dari penelitian ini mendapatkan hasil yang menunjukkan bahwa penggunaan metode EOQ dalam pemesanan bahan baku jauh lebih optimal dan efisien dibanding metode yang selama ini diterapkan, terlihat dari selisih total biaya pemesanan bahan baku pada tepung mencapai 1,21% (404.950 rupiah) selisih pada bahan baku gula 0,02% (4.450 rupiah) dan selisih biaya pada pemesanan ragi dan garam sebesar 14,31% yaitu sebesar Rp. 82.500 untuk Ragi dan Rp. 8.250 untuk selisih pemesanan garam. dengan demikian dapat disimpulkan bahwa penggunaan metode EOQ mempuanyai hasil baik dalam melakukan pemesanan bahan baku sehingga bahan baku untuk produksi tidak mengalami penumpukan dan tidak mengalami kekosongan dalam gudang.

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