Finding economic order quantities with nonlinear goal programming

This paper applies nonlinear goal programming (NLGP) to obtain the economic order quantity (EOQ) in a multi-item inventory problem. The model demonstrates how the appropriate priority structure can be selected to determine the optimum EOQ. Sensitivity analysis on the weight structure in a priority structure of the goals has been performed to obtain different solutions in the decision-making environment. The ideal solution is the identified among the solutions associated with different weight structures. The minimum ofd ₁ distances from different solutions to the ideal solution identifies the most acceptable solution. The associated weight structure will be the appropriate weight structure according to the decision-making situation. The effectiveness of the NLGP model is demonstrated via an example.