EOQ model with package cost

A B ST R A C T Today the world is at the risk of environmental disarray. The main reason is population explosion. The result of the uncontrollable population, forces us to maintain the inventory of all products at a higher level. The suppliers are comparatively lesser than buyers. To retain the confidence of the buyers, the suppliers seek logistics and packaging for the deliverance of the goods to the customers at the right time and in the right manner respectively. This paper deals with an Economic Order Quantity model (EOQ) which associates the package cost along with the costs of ordering, purchasing and holding. The need for packaging and the impact of its inclusion in the classical EOQ model together with transportation cost are discussed.

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