The Economic Order Quantity (EOQ) model is a classical model
used for controlling inventory and satisfying demand. Costs
included in the model are holding cost per unit, ordering cost and
the cost of goods ordered. The assumptions for that model are that
only a single item is considered, that the entire quantity ordered
arrives at one time, that the demand for the item is constant over
time, and that no shortages are allowed.
Suppose we relax the first assumption and...