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Multi-Item Inventory with Multiple Restrictions

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  • Tripathy Arabinda

Abstract

The normal procedure to deal with multi-item inventory situation with restrictions is to obtain the e.c.q. of all items individually and to check for violation of restrictions assuming that the replenishment of all the items may occur simultaneously. In case of violation of restrictions the problem is solved by using the well known lagrangean multiplier method. The lagrangean multiplier method is quite tedious even for one restriction and results in only fifty percent utilization of the constrained resource. The equal order interval for multi-item inventory with one restriction results in more than fifty percent utilization of the constrained resource and it is also computationally very simple. The principle of equal order interval has been used here for two restrictions situation and an working procedure for the same has been evolved.

Suggested Citation

  • Tripathy Arabinda, 1984. "Multi-Item Inventory with Multiple Restrictions," IIMA Working Papers WP1984-06-01_00589, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:wp00589
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