INVENTORY CONTROL PROBLEM USING GEOMETRIC PROGRAMMING

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.