A Revised EOQ Model for Seasonal Demand Problems

• Main Authors: Lin Yu Chun, 林玉君
• Other Authors: Ching-Ter Chang
• Format: Others
• Language: en_US
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/13331896708265749363

碩士 === 國立彰化師範大學 === 會計學系 === 93 === Recently, the inventory control with seasonal demand becomes very important issue because many industries meet this situation, especially in hi-tech industries. However, the assumption of constant demand in classical EOQ model is unsuitable for solving the problem in practice. This paper proposes a new model for solving the inventory problem with seasonal demand in which four basic types of demand curves (i.e., convex-concave, concave, concave-convex, and convex) are derived to measure precisely inventory holding cost for obtaining approximated global optimal solution. The proposed model revised the classical EOQ model for making rational and effective inventory management. Contrary to the classical EOQ model, three advantages of the proposed model are listed below: 1. It is well-suited in the situation of seasonal demand in finding the optimal policy of purchasing in practice. 2. To evaluate the holding cost, the more precise value can be found by the proposed model. 3. The number of order placed is integer, which makes easy to the solution of purchasing problems.