Khalilpourazari and Pasandideh [18] studied a multi-item multiconstrained Economic
Order Quantity model with nonlinear unit holding cost and partial backordering.
They identified the retailer's optimal
order quantity as a function of the wholesale price and his total wealth.
The key terminology in the inventory management includes: stock level, demand in given period, costs of ordering, costs of warehousing, costs of stockout, lead time,
order quantity and reorder point.
In a recent article in this journal Mehra and Amini[1] presented an inflation-adjusted economic
order quantity (EOQ) model.
If the
order quantity is smaller than the realized demand, the newsvendor loses some profit.
Intermediate orders are unstable and magnified in start of increasing period, but stabilized as
order quantity increasing continues.
The second parameter [x.sub.2] is difference between current inventory level in the final product warehouse and calculated inventory level according to the last evaluated daily
order quantity multiplied by 7 days, or constraint of one hundred finished products.