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A Single item EOQ model is modeled using crisp arithmetic approach in decision making process with demand unit cost and dynamic setup cost varies with the quantity produced/Purchased. This paper considers the modification of objective function and storage area in the presence of estimated parameters. The model is developed for the problem by employing NLP modeling approaches over an infinite planning horizon. It incorporates all concepts of crisp arithmetic approach, the quantity ordered, the demand per unit and compares with other model that of the crisp would optimal ordering policy of the problem over an infinite time horizon is also suggested. Investigation of the properties of an optimal solution allows developing an algorithm for obtaining solution through LINGO 13.0 version whose validity is illustrated through an example problem. Sensitivity analysis of the optimal solution is also studied with respect to changes in different parameter values and to draw managerial insights.

Decision-making For A Single Item Eoq Model With Demand-dependent Unit Cost And Dynamic Setup Cost