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An EOQ Model for Items with Weibull Distribution Deterioration Rate

Wang Dao-ping1,Yu Jun-di1,Li Xiang-yang2(1.School of Economics and Management,University of Science and Technology Beijing,Beijing 100083,China; 2.China Petroleum Engineering Co.Ltd.,Beijing Company,Beijing 100085,China)  
For deterioration items,the deterioration rate can be described by Weibull distribution.Basing on this assumption,a new economic order quantity(EOQ) model with time-varying demands and purchase prices is developed to analyze the effect of deteriorating items on inventory management.With this model,numerical analysis and parameter sensitivity analysis are done.It shows that an optimal solution for this problem exists and different parameters have different effect on the optimal inventory control policy.
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