Optimal inventory policies for an economic order quantity models under various cost functions

In this dissertation, three EOQ based inventory models under total cost minimization via geometric programming (GP) techniques are established and analyzed. Through GP, an optimal order quantity for each of these models is found and sensitivity analysis is performed to investigate the effects of percentage changes in the primal objective function coefficients. We also develop and analyze three EOQ based inventory models under profit maximization. The optimal order quantity and price for each of the maximization models is found considering production (lot sizing) as well as marketing (pricing) decisions via GP. Managerial implications of the optimal policy are determined through bounding and sensitivity analysis.; An investigation of the effects of the changes in the optimal solutions according to varied parameters is conducted by studying optimality conditions as well as by performing numerical analysis. A comparative analysis between the total cost minimization models is conducted as well as a comparative analysis between the profit maximization models and the cost minimization models to the profit maximization models. By investigating the error in the optimal solutions of these models, several interesting economic implications and managerial insights are observed.