Traditional inventory models for better price competitiveness

Abstract

Key factor success in logistics management is cost effectiveness. This article aims to describe and apply a method Economic order quantity (EOQ), which allows managers to make a number of important supply decisions. Managers can use EOQ to determine the quantity of items ordered and how often to order. When used to determine the size of the batch, then it is called a model of economic lot size. For the lot size problem we can consider various special cases, one of which is the case using Monge properties. It can be shown that for a given case are lot-size problems solvable in linear time.