An economic order quantity model for seasonal goods (Q2427725)

Summary: Setting the target value (cost minimisation) when its outputs are sold by season-dependent customers is an important and challenging decision to a manager of a business sector. The determination of an appropriate demand pattern for seasonal goods is quite difficult. The purpose of the model presented here lies its application in an enterprise or a manufacturing concern which is considered to be one of the best ways to control inventory in a given economy. The paper deals with an Economic Order Quantity (EOQ) model for seasonal goods such that the demand of the goods follows Sine function. At the beginning of every period, shortages start and continue up to an optimal time after which a new order is placed that satisfies demand and deterioration during the rest of the period. Computational aspects of the problem are discussed and formulation is shown to give successful results on test problems.