Department of industrial Engineering, University of
Missouri-Columbia Columbia, Missouri 65211
Department of industrial and
Management Systems Engineering, The Pennsylvania state University University
Park, Pennsylvania 16802
Department of industrial Engineering, University of
Missouri-Columbia Columbia, Missouri 65211
Inventory control is a problem common to many businesses and
manufacturing systems. Management spends a fair amount of time
trying to determine appropriate inventory policies. The first
inventory model, which is still used widely today, is the economic
order quantity (EOQ) model of Harris. This model, however, does
not consider constraints on the problem such as storage capacity
or budget Limitations. It is the purpose of this paper to examine
the multiple-item deterministic inventory system with one linear
constraint, and establish linear relationships between the Lagrange
multiplier of the constrgint and artain system characteristics.
It is then discussed how the insights from these relationships
can be used to provide tight hunds to the optimal multiplier.
Computational results for these bounds are also included.
