VENDOR – BUYER INVENTORY MODEL UNDER BUDGET AND FLOOR SPACE CONSTRAINTS WITH QUANTITY DISCOUNT

This analysis suggests an inventory model for a quantity discount approach between a vendor and a buyer. The cost of an integrated system is calculated using basic analytical
geometry and an algebraic method, and it complies with floor space and budgetary restrictions. The multiplier approach developed by Lagrange is used to solve this kind of problem. To illustrate the theory, a mathematical model is provided, and the optimal solution's sensitivity
to key parameters is examined.