EOQ inventory model using algebraic method with inventory level constraint

Abstract

An economic order quantity inventory model for deteriorating items with inventory level constraint is proposed in this
study. In this study shortages are allowed for the buyer and demand rate are considered to be constant. Algebraic method is
used to determine the optimum order quantity for minimizing the system cost while it satisfies inventory level constraints.
Lagrange’s multiplier technique is used to solve this kind of problem. Numerical examples are illustrating developed
model.