Improvement of EOQ Model Based on Quantity Discounts Contract and Shortage Loss

Economics Order Quantity(EOQ) model obtains its order quantity for the lowest total cost under the assumption that the demand rate,unit holding cost and order cost are constant.But the assumption of invariable parameters doesn't conform to reality. Assume that the demand rate and ordering cost are uncertain,and storage cost includes fixed cost which is independent on order quantity and variable cost which is dependent on order quantity,this paper obtains the optimal order quantity under two situations such as no permitting shortage and considering the loss of shortage by using triangle fuzzy figure to character demand rate,quantity discount.Final example shows the reasonability of the models in this paper.