Lost Sales Inventory Model in Finite Planning Horizon

This research will extends a previous Economic Order Quantity (EOQ) model with all-units quantity discount when the period is finite planning horizon into the analysis. Exact algorithms are developed for each quantity discount structure to compute optimal policies for models that will minimized total cost over an finite planning horizon. A practical approach and numerical examples are proposed to find the optimal solutions for a discrete quantity order and discrete number of order.The method prove that inventory policy or total cost value when using finite planning horizon always greater equal to inventory policy EOQ, but the difference is not too significant, so this method is good enough to be used.