Haibat Allah sadeghi - DepartmentofIndustrialEngineering,IslamicAzadUniversity,Sanandabranch
Borzou rostami - Department of mathematics Faculty of Science, University of Kurdistan

Determining the economic order is the main and difficulty program in the production and planning. In a wide variety literature of planning and inventory management this subject is discussed. In this paper we presented a new algorithm for determine the economic order in two state backlogs is available or not available. The proposed method of this paper reduces the burden of the computations significantly since for many rigorous test conditions, the algorithm is about twice as fast as the traditional one and reduces the amount of required storage capacity by half This algorithm uses the dynamic programming in solving the model.

planning, dynamic programming, determining the economic order