The Exploration Of EOQ Model Optimization Control Method

In1915, the classical EOQ model is the preliminary research about the inventory control theory. Since the1950s, due to the increasing competition in the market and the deepening of economic globalization, the development of this research became a theory.This paper is a study on exploring on the basis of predecessors’achievements, including two parts, The main content of the study are as follows:(1) Consider the problem of a variable storage costs under the two levels of variable rate demand, and plans to establish a limited period of change items economic quantities qualitative model-assume all allowed Shortage delayed supply, demand rate during the inventory depends on the price and inventory levels; demand rate depends only on the stock price during the period.Through researches, we give the prices, we give the prices were determined value, and how to find the optimal decision variable ordering strategy the easy way.Meanwhile, we also discussed the price of the premise of the decision variables change mainly as linear and nonlinear effects on the optimal ordering policy.(2) Consider the product quality to obey exponential distribution of EOQ model applying of Taguchi method. The paper analysis the profit of the year influenced by the product quality, and consider to calculate the mass lost cost using the Taguchi method in the model. Through the study, we found that the annual average profit given by Taguchi method is lower than the results given by classical EOQ model, but optimal order quantity given by Taguchi is higher than by the classical EOQ model. Finally, the paper pointed out the model’s application of actual production.