As order quantity is increased, the ordering cost per item will be cheaper due to saving of transportation and material handling costs. In this paper, two realistic assumptions such as quantity discount and budget limit are considered. Quantity discount means that all units in the order will be discounted according to the predetermined order levels. Budget limit represents that the costs for inventory investments are bounded. This paper develops a Lagrangian relaxation approach for a continuous review inventory model with a budget constraint and quantity discounts. Computational results indicate that the proposed approach provides a good solution. Sensitivity analysis is done to get some insights on budget limit and quantity discount. As budget limit or the amount of discount according to order quantity is increased, order quantity is increased, whereas reorder point is not always increased.

1. 서 론
 2. 문제 정의
 3. 제안하는 해법
  3.1 라그랑주 완화 문제와 제1계 필요조건
  3.2 제안하는 해법
 4. 예 제
 5. 결 론
 Acknowledgemen
 References

• 이동주(공주대학교 산업시스템공학과) | Dongju Lee Corresponding Author