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The profit per replenishment period, ΠðQ ; p; TÞ, includes threeeconomic elements: the profit margin of sold units excluding RTholding cost, ðp−cÞQ ; the inventory holding costs, h 0 IðQ ; p; tÞdt,and the fixed ordering cost, K. The objective function, profit perunit time, which should be maximized with respect to the threedecision variables (Q, p and T) is:
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