Table of Contents
Journal of Industrial Mathematics
Volume 2013, Article ID 743921, 7 pages
http://dx.doi.org/10.1155/2013/743921
Research Article

EOQ Models with Varying Holding Cost

Faculty of Industrial and Mechanical Engineering, Islamic Azad University, Qazvin Branch, P.O. Box 34185-1416, Qazvin 34185-14161, Iran

Received 10 March 2013; Revised 23 April 2013; Accepted 7 May 2013

Academic Editor: Ting Chen

Copyright © 2013 Naser Ghasemi and Behrouz Afshar Nadjafi. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Models of inventory management contain different parameters. An issue is observable in the classical models which can be related to the determination of the quantity of the economic order and the quantity of the economic production. In these models, the parameters like setup and holding costs and also the rate of demands are fixed. This matter causes the quantity of the economic ordering in classic model to have some differences in comparison with the real-world conditions. It should be stated that holding cost of spoiled and useless products is not always fixed and so the costs increase by passing the time. This paper is an attempt to develop classical EOQ models by considering holding cost as an increasing function of the ordering cycle length. So the classical EOQ models are developed, and the related optimum quantity to the ordering cycle length, economic ordering quantity, and the optimum total cost are determined.