Multiple item inventory models with various demand functions and constraints

Abstract

In real situations often inventory manager have to hold thousand of items in an inventory. In these situations single item inventory models do not help them to manage the inventory properly. So multi item inventory models are often necessary for the inventory holders. In today's market demand of customers is not constant, however it depends on the selling price and also inventory holders have to face different restrictions like limited space in inventory, limited investment and restriction on average inventory level. In present work different models are studied with different demand functions depending on the selling price of items and models with different constraints. The whole work is divided into four chapters. Chapter 1 is introductory in which some classic inventory models have been discussed and literature related to the work have also been discussed. In Chapter 2, a review of research paper entitled "Multi-item EOQ model while demand is sales price and price break sensitive" studied by Pal et al. (2012) has been reviewed and some observations have been made. Based on the observations given in Chapter 2, an attempt has been made in Chapter 3 to find the solution of such type problems using KT conditions, however in place of the models considered by Pal et al. (2012), the simple models have been considered. In Chapter 4, three different multi item inventory models have been solved in which the objective function is same as in model I of chapter 3 subject to limited warehouse storage, limited investment on inventory and restriction on average inventory level constraints separately.