If the maximum requirement of the resource as given by (2) exceeds the maximum limit, W, then the method of Lagrangian multipliers is used for determining the economic inventory policy. Page and Paul achieved a significant reduction in the value of the maximum requirement of the resource for the items belonging to a group by staggering the orders for individual products. In this note, it is intended to demonstrate that it is possible to reduce the total requirement of the resource by considering the products belonging to more than one group. Consider the following two-product problem
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S.K. Goyal (1978) studied this question.