A Study On Extensions For EOQ Model And Inventory/Pricing Joint Decision Problems

The deterministic inventory models are important components of the inventory theory, and they have been deep and widely studied since the EOQ model has been presented. By far, a lot of classic theories have been put forward. At the same time, because of its maturation in theory and convenience in uses, the deterministic inventory theory has been well used in practice, and has provided effective theoretic guidance to the enterprises for saving costs in their running processes. The inventory and pricing decisions are very important to any enterprise, and combining them can integrate the replenishment and sale process, production planning and marketing decisions to realize the target of the enterprise. The inventory /pricing joint decision problems have been widely studied.During recent several decades, although the extensive research of the traditional inventory theory has made much more progress, there is still a big gap between the acquired theoretical results and the requirement of practical application with the deeper use of the inventory theory in practice, and it is necessary to study new inventory models to solve the complicated and variable problems in reality. On the bases of the exist results, this paper extents the EOQ model considering the realistic problems, and develops several deterministic inventory models which are more close to the real system. And the inventory/pricing joint decision problems in the deterministic inventory system are discussed in the paper. The details are given as bellows.(1)A study on the inventory/capacity decisions in homogeneous inventory system.The optimal inventory and capacity joint decisions for a continuous time homogeneous inventory system with finite and infinite horizons are discussed. It is proved that the equal-interval replenishment policy is optimal for the inventory system with the capacity constraint. Based on this, the optimal inventory policy of the system are obtained. Further, the optimal inventory/capacity joint policy are presented with the existence of a fixed expansion cost, and some relationships between the costs under the optimal policy are analyzed.(2) A study on a homogeneous inventory system with present value.Dispose of the assumption as "equal-interval replenishment", the general continuous time homogeneous inventory model with net present value for both finite and infinite horizons are discussed. For the finite horizon case, a relationship between the two adjacent replenishment periods under the optimal policy is obtained and analyzed, and the bounds of the period length are obtained. Based on it, an algorithm for solving the optimal inventory policy is presented. For the infinite horizon case, it is shown that the replenishment periods are of equal-length under the optimal policy and the length of the periods satisfies an expression. It...