Multi-Item Inventory with Multiple Restriction

Abstract

The normal procedure to deal with multi-item inventory situation with restrictions is to obtain the e.o.q. all the items individually and to check for violation of restrictions assuming that the replenishment of all the item may occur simultaneously. In case of violation of restrictions the problem is solved by using the well known lagrangeen Multiplier method. The lagrangeen multiplier method is quite tedious even for one restriction and results in only fifty percent utilization of the constrained resource. The equal order interval for multiitem inventory with one restriction results in more than fifty percent utilization of the constrain resource and it is also computationally very simple. The principle of equal order interval has been used here for two restriction situation and in working procedure for the some has been evolved.