An Inventory Model with Lot Size Dependent Carrying/Holding Cost

In the classical Harris-Wilson (1915) inventory model all the cost associated with the formula was taken to be constant and which also does not depend on any quantity. There are many practical situations where this is not true. This paper considers an inventory model where the carrying cost depends on lot-size and increases in steps as the lot size increases. An algorithm is developed to determine the economic order quantity along with numerical examples.