Abstract

This paper analyzes and develops an efficient algorithm for solving a simple generalization of the classical economic order quantity (EOQ) model where the demand horizon is finite and a periodic review inventory policy is followed. Such problems could arise in production shops where the product under consideration is going to be discontinued and/or replaced by some other product after a certain known number of periods. Such problems could also arise as subproblems in large prodution-inventory problems were demand rate is constant in some periods and varying in others.

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