An easy method to derive EOQ and EPQ inventory models with backorders

An easy method to derive EOQ and EPQ inventory models with backorders

Cárdenas-Barrón (2010) applied algebraic methods to EOQ and EPQ models without referring to differential equations, allowing researchers without backgrounds in calculus to understand inventory models with ease. In this note, we point out that the derivation for EPQ model can be obtained by a transformation of the EOQ model and then we provide a further simplification of his approach such that f...

An easy approach to derive EOQ and EPQ models with shortage and defective items

The derivation of EOQ/EPQ inventory models with two backorders costs using analytic geometry and algebra

The EOQ model will have a century of its discovery in two years, and recently still, many researchers have been using alternative approaches to model and solve inventory systems. The EOQ/EPQ models have been developed using different optimization methods. However, in many of the works that deal with the EOQ/EPQ with backorders only linear backorders cost is considered. This paper proposes anoth...

Using simple methods to derive EOQ and EPQ models with shortage and imperfect quality

Huang [ Journal of Statistics and Management Systems, Vol. 6 (2003), No. 2, pp. 171-180 ] studied the EOQ (Economic Order Quantity) and EPQ (Economic Production Quantity) models with backlogging and defective items using the algebraic approach. He assumed 100% inspection policy and the known proportion of defective items was removed prior to storage or use after the screening process. In this p...

The Inventory Models with Backorders and Defective Items Derived Algebraically and Agm

The algebraic arithmetic-geometric mean inequality method (the algebraic AGM method) is used to derive the optimal lot size and the optimal backorders level for the EOQ and EPQ models with backorders and defective items introduced by [6]. The method is easy to derive both the optimal lot size and optimal backorders level without derivatives. AMS Subject Classification: 90B05