IDEAS home Printed from https://ideas.repec.org/a/taf/tsysxx/v43y2012i11p2160-2171.html
   My bibliography  Save this article

Optimal policy for profit maximising in an EOQ model under non-linear holding cost and stock-dependent demand rate

Author

Listed:
  • V. Pando
  • J. García-Laguna
  • L.A. San-José

Abstract

In this article, we integrate a non-linear holding cost with a stock-dependent demand rate in a maximising profit per unit time model, extending several inventory models studied by other authors. After giving the mathematical formulation of the inventory system, we prove the existence and uniqueness of the optimal policy. Relying on this result, we can obtain the optimal solution using different numerical algorithms. Moreover, we provide a necessary and sufficient condition to determine whether a system is profitable, and we establish a rule to check when a given order quantity is the optimal lot size of the inventory model. The results are illustrated through numerical examples and the sensitivity of the optimal solution with respect to changes in some values of the parameters is assessed.

Suggested Citation

  • V. Pando & J. García-Laguna & L.A. San-José, 2012. "Optimal policy for profit maximising in an EOQ model under non-linear holding cost and stock-dependent demand rate," International Journal of Systems Science, Taylor & Francis Journals, vol. 43(11), pages 2160-2171.
    • Handle: RePEc:taf:tsysxx:v:43:y:2012:i:11:p:2160-2171
    DOI: 10.1080/00207721.2011.565134
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00207721.2011.565134
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00207721.2011.565134?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Valentín Pando & Luis A. San-José & Joaquín Sicilia, 2021. "An Inventory Model with Stock-Dependent Demand Rate and Maximization of the Return on Investment," Mathematics, MDPI, vol. 9(8), pages 1-18, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tsysxx:v:43:y:2012:i:11:p:2160-2171. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TSYS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.