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...

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 purpose of this study was to analyze raw material inventory control with the Economic Order Quantity (EOQ) method on CV. BJT 47 Embroidery Sukabumi City. research used is descriptive quantitative describe and data. data processed using EOQ determine total cost inventory. results show that there a large difference if method, savings are more efficient. conclusion by applying we can optimize ...

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...

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 ...