Dynamic calculation of the constrained EOQs for multiple products with space restrictions

The paper proposes an alternative method for the multi-item EOQ calculation in presence of space restrictions. The method, based on the Lagrange multipliers, consists of an iterative procedure which analyses dynamically, through the simulation, the effect of consumption rates and delivery times, and determines the real overlapping of the stocks in a fixed period of time. This makes possible a more effective exploitation of the warehouse space that brings the lot sizes nearer to their optimal values. The proposed approach has been compared with the traditional Lagrange method showing interesting results in terms of reduction of the total management cost.