Economic Order Quantity Model for Growing Items with Incremental Quantity Discounts, Capacitated Storage Facility, and Limited Budget
The development of the inventory model started when Harris introduced the classic inventory model. It was firstly published by Wilson using the optimization method. He derived a mathematical equation model to obtain economic order quantities. Later, this model is known as the classic Economic Order...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Petra Christian University
2020-06-01
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| Series: | Jurnal Teknik Industri |
| Subjects: |
| _version_ | 1797991195581874176 |
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| author | Yosi Agustina Hidayat Veterina Nosadila Riaventin Okky Jayadi |
| author_facet | Yosi Agustina Hidayat Veterina Nosadila Riaventin Okky Jayadi |
| author_sort | Yosi Agustina Hidayat |
| collection | DOAJ |
| description | The development of the inventory model started when Harris introduced the classic inventory model. It was firstly published by Wilson using the optimization method. He derived a mathematical equation model to obtain economic order quantities. Later, this model is known as the classic Economic Order Quantity (EOQ) or Wilson Model. The classic inventory EOQ model has some limitations. The model assumed that order items do not have physical changes during a planning period. This assumption becomes the weakness of the classical EOQ inventory model. Many items have material changes during a planning period, such as amelioration, deterioration, and growth. This research proposed a new mathematical model. The model relaxes three implicit assumptions of the classical EOQ: (1) the ordered items do not grow; (2) unlimited capacity; and (3) unlimited budget. A solution procedure to solve the model was developed and illustrated with a numerical example. A numerical example was performed to compare the result between the reference model and the new model. The number of ordered items per cycle time increased by 7%, and cycle time increased by 28%. It increased because the proposed model tends to choose large purchased quantities to get a cheap price. It caused the number of ordered items per cycle time to be larger and the cycle time to be smaller than the reference model. This research also provided sensitivity analysis. It showed the response of decision variables to some changes in input parameters. |
| first_indexed | 2024-04-11T08:47:32Z |
| format | Article |
| id | doaj.art-76e6a54e950b45a7b214947327202028 |
| institution | Directory Open Access Journal |
| issn | 1411-2485 |
| language | English |
| last_indexed | 2024-04-11T08:47:32Z |
| publishDate | 2020-06-01 |
| publisher | Petra Christian University |
| record_format | Article |
| series | Jurnal Teknik Industri |
| spelling | doaj.art-76e6a54e950b45a7b2149473272020282022-12-22T04:33:54ZengPetra Christian UniversityJurnal Teknik Industri1411-24852020-06-01221110https://doi.org/10.9744/jti.22.1.1-10Economic Order Quantity Model for Growing Items with Incremental Quantity Discounts, Capacitated Storage Facility, and Limited BudgetYosi Agustina Hidayat0Veterina Nosadila Riaventin1Okky Jayadi2Bandung Institute of TechnologyBandung Institute of TechnologyBandung Institute of TechnologyThe development of the inventory model started when Harris introduced the classic inventory model. It was firstly published by Wilson using the optimization method. He derived a mathematical equation model to obtain economic order quantities. Later, this model is known as the classic Economic Order Quantity (EOQ) or Wilson Model. The classic inventory EOQ model has some limitations. The model assumed that order items do not have physical changes during a planning period. This assumption becomes the weakness of the classical EOQ inventory model. Many items have material changes during a planning period, such as amelioration, deterioration, and growth. This research proposed a new mathematical model. The model relaxes three implicit assumptions of the classical EOQ: (1) the ordered items do not grow; (2) unlimited capacity; and (3) unlimited budget. A solution procedure to solve the model was developed and illustrated with a numerical example. A numerical example was performed to compare the result between the reference model and the new model. The number of ordered items per cycle time increased by 7%, and cycle time increased by 28%. It increased because the proposed model tends to choose large purchased quantities to get a cheap price. It caused the number of ordered items per cycle time to be larger and the cycle time to be smaller than the reference model. This research also provided sensitivity analysis. It showed the response of decision variables to some changes in input parameters.economic order quantitygrowing itemincremental quantity discountcapacitated storage facilitylimited budget |
| spellingShingle | Yosi Agustina Hidayat Veterina Nosadila Riaventin Okky Jayadi Economic Order Quantity Model for Growing Items with Incremental Quantity Discounts, Capacitated Storage Facility, and Limited Budget Jurnal Teknik Industri economic order quantity growing item incremental quantity discount capacitated storage facility limited budget |
| title | Economic Order Quantity Model for Growing Items with Incremental Quantity Discounts, Capacitated Storage Facility, and Limited Budget |
| title_full | Economic Order Quantity Model for Growing Items with Incremental Quantity Discounts, Capacitated Storage Facility, and Limited Budget |
| title_fullStr | Economic Order Quantity Model for Growing Items with Incremental Quantity Discounts, Capacitated Storage Facility, and Limited Budget |
| title_full_unstemmed | Economic Order Quantity Model for Growing Items with Incremental Quantity Discounts, Capacitated Storage Facility, and Limited Budget |
| title_short | Economic Order Quantity Model for Growing Items with Incremental Quantity Discounts, Capacitated Storage Facility, and Limited Budget |
| title_sort | economic order quantity model for growing items with incremental quantity discounts capacitated storage facility and limited budget |
| topic | economic order quantity growing item incremental quantity discount capacitated storage facility limited budget |
| work_keys_str_mv | AT yosiagustinahidayat economicorderquantitymodelforgrowingitemswithincrementalquantitydiscountscapacitatedstoragefacilityandlimitedbudget AT veterinanosadilariaventin economicorderquantitymodelforgrowingitemswithincrementalquantitydiscountscapacitatedstoragefacilityandlimitedbudget AT okkyjayadi economicorderquantitymodelforgrowingitemswithincrementalquantitydiscountscapacitatedstoragefacilityandlimitedbudget |