Github Links:
https://github.com/Aues12/IE-Models-Catalog/blob/main/inventory_models.py
Basic_EOQ class of inventory_models.py.
Definition: Economic Order Quantity (EOQ) is the simplest inventory model.
Assumption: Instant delivery, constant demand.
Formula:
$Q^* = \sqrt{\frac{2DS}{H}}$
Where:
This model is the foundation. All variations build upon it.
EPQ class of inventory_models.py.
Definition: An extension of EOQ used when items are produced gradually rather than delivered instantly.
Assumptions:
Formula:
$Q^* = \sqrt{\frac{2DS}{H} \cdot \frac{P}{P - d}}$
Where:
Key Difference: Inventory builds up gradually during production and is consumed at the same time.