Economic lot-sizing of three warehouses EOQ type model: AM-GM inequality-based optimization technique

Abstract

This paper focuses on the optimal policy of a classical three warehouses inventory problem which is modelled under some assumptions like the Harris-Wilson model. In this model, among three warehouses, one is own warehouse and remaining two are rented. Now, the main purpose is to minimize the system's average cost and find out economic order quantity and cycle length using arithmetic mean- geometric mean (AM-GM) inequality. Finally, all the findings illustrating the system's optimality conditions are validated by numerical examples

Keywords

• Three warehouse
• Optimality
• Arithmetic mean- Geometric mean

Supporting Institution

No

Ethical Statement

NA

References

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