An EOQ model with state-dependent demand rate

Oded Berman, David Perry

Research output: Contribution to journalArticlepeer-review


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.

Original languageEnglish
Pages (from-to)255-272
Number of pages18
JournalEuropean Journal of Operational Research
Issue number1
StatePublished - 16 May 2006


  • EOQ
  • Inventory control
  • State-dependent demand rate

ASJC Scopus subject areas

  • General Computer Science
  • Modeling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management


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