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...

This paper is focused on the coordination of order and production policy between buyers and suppliers in supply chains. When a buyer and a supplier of an item work independently, the buyer will place orders based on his economic order quantity (EOQ). However, the buyer’s EOQ may not lead to an optimal policy for the supplier. It can be shown that a cooperative batching policy can reduce total c...

This section is devoted to the Economic Production Quantity (EPQ) model, its specialization to the Economic Order Quantity (EOQ) model and its extension to allow backorders. The next section deals with multiple products. The primary driver to hold inventories is the presence of a fixed production/ordering cost that is incurred every time a positive number of units are produced/ordered. We wish ...

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 ...

In this paper, we address the problem of deciding the optimal ordering quantity and frequency for a supplier– retailer logistic system in which the transportation cost as well as the multiple uses of the vehicles are considered. Based on the traditional economic order quantity (EOQ) formula, a modified EOQ model is set up and an algorithm for the model is presented. Computational results verify...