The Role of Items Quantity Constraint to Control the Optimal Economic Order Quantity

Abstract

The obligation or the traditional question in inventory models is how much or how many of inventory items to order. In inventory control, the economic order quantity, EOQ is varies from model to another based on the variables and assumptions. This paper develops the EOQ using two deterministic inventory models (Purchases model and production model with shortage) of multi-items when the objective function is subjected to a constrained number of items quantities. The constraints are supposed to be active if the left-hand side does not satisfy the right-hand side condition. Thus, to achieve the new formula of multi-item EOQ in each of the two models with the constraint, Lagrange method have been used. Finally, to provide the proposed model a numerical example has been used.Keywords: deterministic inventory models, economic order quantity and lagrange method

The role of forecasting in preventing supply chain disruptions during the COVID-19 pandemic: a distributor-retailer perspective

“…Supply managers seeking to rectify demand shortages are interested in identifying potential disruption scenarios to enhance decision-making and to determine what actions are required for recovery (Ghafour 2017 ; Ivanov and Dolgui 2021 ). The breakdown of SCs and the wide impact of COVID-19 have provided clear evidence of the urgent need to develop resilient SCs that can employ robust strategies to accommodate external disruptions (Ivanov and Das 2020 ; Chowdhury et al 2021 ).…”