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

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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...

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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

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ژورنال

عنوان ژورنال: Applied Mathematical Modelling

سال: 2011

ISSN: 0307-904X

DOI: 10.1016/j.apm.2010.11.053