Demand influenced by enterprises' initiatives - A multi-item EOQ model of deteriorating and ameliorating items
An interesting multi-item EOQ (Economic Order Quantity) model is established when the time varying demand is influenced by enterprises' initiatives like advertising media and salesmen' effort. It is developed for deteriorating and ameliorating items with capacity constraint for storage facility. The effect of inflation and time value of money in the profit and cost parameters is also considered. The associated profit function is maximized by Euler-Lagrange's method, and it is illustrated by various time varying demands like quadratic, linear and exponential demand functions. (C) 2010 Elsevier Ltd. All rights reserved.
advertising inflation time value of money salesmen's effort inventory