Discontinuous Economic Growing Quantity Inventory Model

Abstract

The classical economic growing quantity (EGQ) model is a key concept in the inventory control problems research literature. The EGQ model is commonly employed for the purpose of inventory control in the management of growing items, such as fish and farm animals, within industries such as livestock, seafood, and aviculture. The economic order quantity (EOQ) model assumes that customer demand is satisfied without interruption in each cycle; however, this assumption is not always true for some companies as they do not have continuous operations, except for item storage, during non-working times such as weekends, natural idle periods, or spare time. In this study, we extend the traditional EGQ model by incorporating the concept of working and non-working periods, resulting in the development of a new model called discontinuous economic growing quantity (DEGQ). Unlike the conventional EGQ model, the DEGQ model considers the presence of intermittent operational periods, in which the firm is actively engaged in its activities, and non-working periods, during which only storage-related operations occur. By incorporating this discontinuity, the DEGQ model provides a more accurate representation of real-world scenarios where businesses operate in a non-continuous manner, thus enhancing the effectiveness of inventory control and management strategies. The study aims to obtain the optimal number of periods in each cycle and the optimal slaughter age for the breeding items, and, subsequently, to find the optimal order size to minimize the total cost. Finally, we propose an optimal analytical procedure to determine the optimal solutions. This procedure entails finding the optimal number of periods using a closed-form equation and determining the optimal slaughter age by exhaustively searching the entire range of possible growth times.

Keywords

• economic order quantity (EOQ)
• economic growing quantity (EGQ)
• discontinuous periods
• idle time
• discontinuous economic growing quantity (DEGQ)