We present an EOQ-type model in which the demand rate is a function of the inventory level. The demand functions and holding cost functions considered are quite general. In particular, we focus on two types of demand rate functions: a piecewise constant function and a family of exponential functions. The paper includes analysis of the problem, optimization and sensitivity analysis. We also extend the model by adding randomness to the order sizes.
- Inventory control
- State-dependent demand rate
ASJC Scopus subject areas
- Computer Science (all)
- Modeling and Simulation
- Management Science and Operations Research
- Information Systems and Management