The model is suitable for the storage problem of batch purchase at intervals without shortage, that is, the demand per unit time of a certain material is constant d, and the storage capacity is gradually decreasing with the consumption rate of quantity d per unit time.
After time t, the storage capacity drops to zero. At this point, the order is ordered and arrives immediately. The storage capacity rises from zero to the highest storage capacity Q, and then the next storage cycle begins, forming a multi-cycle storage model.
Extended data:
The economic order batch model was first proposed by F.W.Harris in 19 15. The model has the following assumptions:
(1) The demand rate is known and unchanged. The annual demand rate is represented by D, and the demand rate per unit time is represented by D. 。
(2) There is no upper or lower limit for the order quantity.
(3) There is no price discount for procurement and transportation.
(4) The order lead time is known and constant.
(5) The subscription fee has nothing to do with the quantity ordered.
(6) Inventory maintenance fee is a linear function of inventory.
(7) The replenishment rate is infinite, and all orders are delivered at one time.
(8) No shortage is allowed.
(9) Adopt quantitative system.
Reference materials? Baidu encyclopedia -EOQ model