Abstract
In most production-inventory systems, the products are transferred from the
production centre to the inventory (warehouse) in subbatchs rather than one at a
time. In this paper, mathematical models of such systems for both deterministic
and stochastic cases of demand are developed and analysed. Comparison of
these new models with the EBQ model shows a considerable loss when applying
the rules of EBQ model to the batch transferring systems.
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