Given an arbitrary price (and corresponding demand), the retailer's only strategy is to minimize his inventory ordering and holding costs by using the EOQ model
Philip, An EOQ model
for items with weibull distribution deterioration, AIIE Transactions, 5(1973), 323-326.
Choudhuri (1995), An EOQ model
for deteriorating items with linear time-dependent demand rate and shortages under inflation and time discounting, Journal of the Operational Research society, 27, 213-224
However, the EOQ model
can be modified to reflect many of these more complicated issues.
An EOQ model
f or deteriorating items with shortages and time- varying demand.
Until a few years ago, the EOQ model
was used to calculate stock levels and place orders, while the forecasts used to calculate the levels and reorder point were based solely on historical demands.
Chand and Ward (1985) analyzed Goyal's problem under assumptions of the classical EOQ model
, obtaining different results.
Zhou, An optimal EOQ model
for deteriorating items with two warehouses and time varying demand, Mathematica Applicata 10 (1998), 19-23.
Recall that the EOQ model
assumes constant, steady demand.
1997, An EOQ model
for deteriorating items with a linear trend in demand and shortages in all cycles.
It is proved that the results reduce to the corresponding results for the standard EOQ model
when demand is constant and deterioration approaches zero.
An EOQ model
for deteriorating items with time varying demand and partial backlogging.