The EOQ Inventory Model for Salers based on Profit-maximization

The paper puts forward the inventory model of profit maximization for salers based on analysis into EOQ model.The model takes into consideration factors including products’ value decline with time and the influence to the profit due to price change.On condition that the demand function is linear,the optimal solution of salers’ profit function is proven to be existing.The case study indicates that sale price,compared with goods ordering cycle,has greater impact to the profit.This inventory model targeting with profit maximization is more practical than the classical EOQ model.