EOQ Model with Inventory Level Dependent Demand Rate under Permissible Delay in Payments with Cash Discount

H  S  Shukla; R  P  Tripathi; A  Siddiqui  and Vivek Shukla

doi:10.17485/ijst/2015/v8i28/70260

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EOQ Model with Inventory Level Dependent Demand Rate under Permissible Delay in Payments with Cash Discount

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Indian Journal of Science and Technology

DOI: 10.17485/ijst/2015/v8i28/70260

Year: 2015, Volume: 8, Issue: 28, Pages: 1-9

Original Article

EOQ Model with Inventory Level Dependent Demand Rate under Permissible Delay in Payments with Cash Discount

H. S. Shukla¹ , R. P. Tripathi^2*, A. Siddiqui¹ and Vivek Shukla³

¹Department of Mathematics and Statistics, DDU Gorakhpur University, Gorakhpur - 273009, Uttar Pradesh, India
² Department of Mathematics, Graphic Era University, Dehradun - 248002, Uttara Khand, India; [email protected]
³ Department of Mathematics, MMM Engineering College, Gorakhpur - 273001, Uttar Pradesh, India

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

In this paper, we develop an EOQ model for power demand under the condition of permissible delay in payment by considering four different situations. Mathematical formulation is derived under these four different situations. The main objective of this work is to obtain minimum total relevant cost. Next, we derive optimal solution optimal cycle time, order quantity and total relevant cost for the proposed model. The theoretical results are illustrated with numerical examples. The sensitivity analysis of the optimal solution is provided with respect to key parameters of the system. Mathematica 5.1 software is used for finding numerical results.
Keywords: Cash Discount, Demand Rate, EOQ Model, Permissible Delay, Total Relevant Cost