A Multiple Items EPQ/EOQ Model for a Vendor and Multiple Buyers System Considering Continuous and Discrete Demand Simultaneously
Jonrinaldi, J; Rahman, T; Henmaidi, H; et al.Wirdianto, E; Zhang, Z
Date: 1 December 2017
Article
Journal
IOP Conference Series: Materials Science and Engineering
Publisher
IOP Publishing
Publisher DOI
Abstract
This paper proposed a mathematical model for multiple items Economic Production
and Order Quantity (EPQ/EOQ) with considering continuous and discrete demand
simultaneously in a system consisting of a vendor and multiple buyers. This model is used to
investigate the optimal production lot size of the vendor and the number of shipments ...
This paper proposed a mathematical model for multiple items Economic Production
and Order Quantity (EPQ/EOQ) with considering continuous and discrete demand
simultaneously in a system consisting of a vendor and multiple buyers. This model is used to
investigate the optimal production lot size of the vendor and the number of shipments policy of
orders to multiple buyers. The model considers the multiple buyers’ holding cost as well as
transportation cost, which minimize the total production and inventory costs of the system. The
continuous demand from any other customers can be fulfilled anytime by the vendor while the
discrete demand from multiple buyers can be fulfilled by the vendor using the multiple
delivery policy with a number of shipments of items in the production cycle time. A
mathematical model is developed to illustrate the system based on EPQ and EOQ model. Solution procedures are proposed to solve the model using a Mixed Integer Non Linear
Programming (MINLP) and algorithm methods. Then, the numerical example is provided to
illustrate the system and results are discussed.
Engineering
Faculty of Environment, Science and Economy
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