Multi-Item EOQ Model with Both Demand-Dependent Unit Cost and Varying Leading Time via Geometric Programming

Abstract

The objective of this paper is to derive theanalytical solution of the EOQ model of multiple itemswith both demand-dependent unit cost and leading timeusing geometric programming approach. The varyingpurchase and leading time crashing costs are consideredto be continuous functions of demand rate and leadingtime, respectively. The researchers deduce the optimalorder quantity, the demand rate and the leading time asdecision variables then the optimal total cost isobtained.