Harris’s classic square root economic order quantity (EOQ) model forms the basis for many other models that relax one or more of its assumptions. A key assumption of the basic EOQ model is that stockouts are not permitted. Due to the excess demands, stock-out situations may arise occasionally. Sometimes, shortages are permitted and they are backordered and satisfied in the very next replenishme...

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...

We consider a continuous-review inventory model for a firm that faces deterministic demand but whose supplier experiences random disruptions. The supplier experiences “wet” and “dry” (operational and disrupted) periods whose durations are exponentially distributed. The firm follows an EOQ-like policy during wet periods but may not place orders during dry periods; any demands occurring during dr...

In this paper we consider defective products and Taguchi’s cost of poor quality in the economic order quantity (EOQ) model. We assume that the product quality performs a normal distribution function, and the Taguchi’s poor quality cost has been involved. From our analysis, it has been found that the annual profit will be decreased if the poor quality of product and Taguchi’s quality cost are in...

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...

This paper presents a simple deterministic EOQ with time-dependent partial backlogging. The penalty during stockout arises from lost sales rather than from the usual shortage cost parameter. The model has a unique minimum for a broad class of lost-sales behavior during stockout. The main result is that a special case corresponds to the traditional full backlogging model and provides a means to ...

The Economic Order Quantity (EOQ) problem is a fundamental problem in supply and inventory management. In its classical setting, solutions are not affected by the warehouse capacity. We study a type of EOQ problem where the (maximum) warehouse capacity is a decision variable. Furthermore, we assume that thewarehouse cost dominates all the other inventory holding costs. We call this the EOQ-Max ...

As a result to today’s uncertain economy, companies are searching for alternative ways to stay competitive. In which, Company XYZ has been faced with an ineffective forecasting method that has lead to multiple product stock outs. The issue faced has caused sales loss as well as profit loss, which companies can not afford to lose if they want to stay competitive. This project goes through the pr...

We consider a continuous-review inventory model for a retailer who faces deterministic demand but whose supplier is unreliable. The supplier experiences “wet” and “dry” (operational and disrupted) periods whose durations are exponentially distributed. The retailer follows an EOQ-like policy during wet periods but may not place orders during dry periods; any demands occurring during dry periods ...

Among the assumptions of the classical economic order quantity (EOQ) model is that all units that are purchased (or produced) are of perfect quality. However, this is frequently unrealistic since production processes deteriorate resulting in the production of defective products requiring rework. Some recent studies suggest that production systems performance might be improved by applying the fi...