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An algorithm for solution of an interval valued EOQ model

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Publication Year:

DOI: 
10.11121/ijocta.01.2013.00113

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Abstract (Original Language): 
This paper deals with the problem of determining the economic order quantity (EOQ) in the interval sense. A purchasing inventory model with shortages and lead time, whose carrying cost, shortage cost, setup cost, demand quantity and lead time are considered as interval numbers, instead of real numbers. First, a brief survey of the existing works on comparing and ranking any two interval numbers on the real line is presented. A common algorithm for the optimum production quantity (Economic lot-size) per cycle of a single product (so as to minimize the total average cost) is developed which works well on interval number optimization under consideration. A numerical example is presented for better understanding the solution procedure. Finally a sensitive analysis of the optimal solution with respect to the parameters of the model is examined.
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