Abstract:
Every organization needs inventory for smooth running of its activities. It serves between
production and distribution process. The investment in inventories constitutes the most
significant part of current assets and working capital in most of the undertaking. Thus,
it is very essential to have proper control and management of inventories. In this paper
we analyzed an inventory control problem using geometric programming. The solution
procedure for non-linear programming problem is proposed by using additive operator and
geometric programming method. We developed an inventory model without shortages
where the production cost is inversely related to the setup cost and production quantity.
In addition, the holding cost is considered time dependent. We consider deterministic
single objective EOQ model with limited storage capacity and solve it by applying crisp
GP.
