运筹学Ⅲ教学资料 15 Deterministic EOQ Inventory Models.pdfVIP

Deterministic EOQ Inventory Models In this chapter, we begin our formal study of inventory modeling. In earlier chapters, we de- scribed how linear programming can be used to solve certain inventory problems. Our study of inventory will continue in Chapters 16, 18, and 19. We begin by discussing some important concepts of inventory models. Then we develop versions of the famous economic order quantity (EOQ) model that can be used to make op- timal inventory decisions when demand is deterministic (known in advance). In Chapters 16 and 19, we discuss models in which demand is allowed to be random. 15.1 Introduction to Basic Inventory Models To meet demand on time, companies often keep on hand stock that is awaiting sale. The purpose of inventory theory is to determine rules that management can use to minimize the costs associated with maintaining inventory and meeting customer demand. Inventory models answer the following questions. (1) When should an order be placed for a prod- uct? (2) How large should each order be? Costs Involved in Inventory Models The inventory models considered in this book involve some or all of the following costs. Ordering and Setup Cost Many costs associated with placing an order or producing a good internally do not de- pend on the size of the order or on the production run. Costs of this type are referred to as the ordering and setup cost. For example, ordering cost would include the cost of pa- perwork and billing associated with an order. If the product is made internally rather than ordered from an external source, the cost of labor (and idle time) for sett