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Economic order quantity

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In order to find the optimal order quantity under different quantity discount schemes, one should use algorithms; these algorithms are developed under the assumption that the EOQ policy is still optimal with quantity discounts. Perera et al. (2017) establish this optimality and fully characterize the
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for a product is constant over a period of time (such as a year) and each new order is delivered in full when inventory reaches zero. There is a fixed cost for each order placed, regardless of the quantity of items ordered; an order is assumed to contain only one type of inventory item. There is also
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Another important extension of the EOQ model is to consider items with imperfect quality. Salameh and Jaber (2000) were the first to study the imperfect items in an EOQ model very thoroughly. They consider an inventory problem in which the demand is deterministic and there is a fraction of imperfect
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model (EPQ), have been criticised for "their restrictive set of assumptions. Guga and Musa make use of the model for an Albanian business case study and conclude that the model is "perfect theoretically, but not very suitable from the practical perspective of this firm". However, James Cargal notes
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In presence of a strategic customer, who responds optimally to discount schedules, the design of an optimal quantity discount scheme by the supplier is complex and has to be done carefully. This is particularly so when the demand at the customer is itself uncertain. An interesting effect called the
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The required parameters to the solution are the total demand for the year, the purchase cost for each item, the fixed cost to place the order for a single item and the storage cost for each item per year. Note that the number of times an order is placed will also affect the total cost, though this
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All units discount: an order of 1–1000 units costs $ 50 each; an order of 1001–5000 units costs $ 45 each; an order of more than 5000 units costs $ 40 each. So when 1500 units are ordered, the total cost is $
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Tsan-Ming Choi (Ed.) Handbook of EOQ Inventory Problems: Stochastic and Deterministic Models and Applications, Springer's International Series in Operations Research and Management Science, 2014.
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An important extension to the EOQ model is to accommodate quantity discounts. There are two main types of quantity discounts: (1) all-units and (2) incremental. Here is a numerical example:
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Incremental unit discount: Units 1–100 cost $ 30 each; Units 101–199 cost $ 28 each; Units 200 and up cost $ 26 each. So when 150 units are ordered, the total cost is $ 30*100 + $ 28*50.
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Several extensions can be made to the EOQ model, including backordering costs and multiple items. In the case backorders are permitted, the inventory carrying costs per cycle are:
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is optimal. In the first case the optimal lot is given by the classic EOQ formula, in the second case an order is never placed and minimum yearly cost is given by
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and specialist software allows for more versatility in the use of the formula and adoption of "assumptions which are more realistic" than in the original model.
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If we check the total cost for any order quantity other than 400(=EOQ), we will see that the cost is higher. For instance, supposing 500 units per order, then
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Perera, Sandun; Janakiraman, Ganesh; Niu, Shun-Chen (2018). "Optimality of (s, S) Inventory Policies under Renewal Demand and General Cost Structures".
3408:(2013) has introduced the multi-criteria EOQ models where the criteria could be minimizing the total cost, Order quantity (inventory), and Shortages. 89:
The EOQ indicates the optimal number of units to order to minimize the total cost associated with the purchase, delivery, and storage of the product.
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Ordering cost: This is the cost of placing orders: each order has a fixed cost K, and we need to order D/Q times per year. This is K × D/Q
1205: 1113: 3731: 2424:{\displaystyle {\frac {\partial {\mathcal {K}}}{\partial s}}=-{\frac {IC}{Q}}(Q-s)+{\frac {1}{Q}}\pi \lambda +{\frac {1}{Q}}{\hat {\pi }}s=0} 1418:"reverse bullwhip" takes place where an increase in consumer demand uncertainty actually reduces order quantity uncertainty at the supplier. 3932:
Perera, Sandun; Janakiraman, Ganesh; Niu, Shun-Chen (2017). "Optimality of (s,S) policies in EOQ models with general cost structures".
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Perera, Sandun; Janakiraman, Ganesh; Niu, Shun-Chen (2017). "Optimality of (s,S) policies in EOQ models with general cost structures".
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Perera, Sandun; Janakiraman, Ganesh; Niu, Shun-Chen (2017). "Optimality of (s,S) policies in EOQ models with general cost structures".
2861: 2677: 264:= annual holding cost per unit, also known as carrying cost or storage cost (capital cost, warehouse space, refrigeration, insurance, 3510: 58: 4052: 3479: 372: 300: 3464: 3429: 3388: 287:
Purchase cost: This is the variable cost of goods: purchase unit price × annual demand quantity. This is P × D
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function, where a person's holdings of money balances can be seen in a way parallel to a firm's holdings of inventory.
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Holding cost: the average quantity in stock (between fully replenished and empty) is Q/2, so this cost is h × Q/2
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Caplin, Andrew; Leahy, John (2010). "Economic Theory and the World of Practice: A Celebration of the (s, S) Model".
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Plossel, George. Orlicky's Material Requirement's Planning. Second Edition. McGraw Hill. 1984. (first edition 1975)
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Salameh, M.K.; Jaber, M.Y. (March 2000). "Economic production quantity model for items with imperfect quality".
973:{\displaystyle ={\sqrt {\frac {2\cdot 10000\cdot 40}{4+50\cdot 2\%}}}={\sqrt {\frac {2\cdot 10000\cdot 40}{5}}}} 764: 3808:
Tao, Z., A. L. Guiffrida, and M. D. Troutt, "A green cost based economic production/order quantity model", in
3354: 986: 704:{\displaystyle T={\frac {DK}{Q}}+{\frac {hQ}{2}}+PD={\frac {h}{2Q}}(Q-{\sqrt {2DK/h}})^{2}+{\sqrt {2hDK}}+PD,} 2293:{\displaystyle {\frac {\partial {\mathcal {K}}}{\partial Q}}=-{\frac {1}{Q^{2}}}\left+{\frac {IC}{Q}}(Q-s)=0} 441: 3420:
items in the lot and are screened by the buyer and sold by them at the end of the circle at discount price.
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Goyal, S.K. (1987). "A simple heuristic method for determining economic order interval for linear demand".
2729: 1905:. The average annual variable cost is the sum of order costs, holding inventory costs and backorder costs: 3686: 3474: 1855: 2823: 3747:
Trippi, Robert R.; Lewin, Donald E. (1974). "A Present Value Formulation of the Classical Eoq Problem".
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Altintas, Nihat; Erhun, Feryal; Tayur, Sridhar (2008). "Quantity Discounts Under Demand Uncertainty".
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of the total cost with respect to Q (assume all other variables are constant) and set it equal to 0:
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model (which determines the optimal production quantity) can be determined in a similar fashion.
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This illustrates that the economic order quantity is always in the best interests of the firm.
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that the formula was developed when business calculations were undertaken "by hand", or using
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per unit, typically cost of ordering and shipping and handling. This is not the cost of goods)
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applied it extensively, and he and K. Andler are given credit for their in-depth analysis.
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A version taking the time-value of money into account was developed by Trippi and Lewin.
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Proceedings of the 1st Annual Kent State International Symposium on Green Supply Chains
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Camp, W. E. "Determining the production order quantity", Management Engineering, 1922
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The single-item EOQ formula finds the minimum point of the following cost function:
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Additionally, the economic order interval can be determined from the EOQ and the
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Total Cost = purchase cost or production cost + ordering cost + holding cost
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where s is the number of backorders when order quantity Q is delivered and
1374:{\displaystyle =50\cdot 10000+40\cdot (10000/300)+5\cdot (300/2)=502083.33} 3975: 268:(price x interest), etc. usually not related to the unit production cost) 3700: 3708: 3597: 1282:{\displaystyle =50\cdot 10000+40\cdot (10000/500)+5\cdot (500/2)=502050} 1190:{\displaystyle =50\cdot 10000+40\cdot (10000/400)+5\cdot (400/2)=502000} 3966: 1409:(s,S) optimality within the EOQ setting under general cost structures. 362:
To determine the minimum point of the total cost curve, calculate the
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Renewal Demand and (s, S) Optimality by Perera, Janakiraman, and Niu
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Zipkin, Paul H, Foundations of Inventory Management, McGraw Hill 2000
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Substituting the second equation into the first gives the following
3068:{\displaystyle s^{*}=^{-1}\left(-\pi \lambda +\left^{1/2}\right)} 3883:
Wilson, R. H. (1934). "A Scientific Routine for Stock Control".
2719:{\displaystyle \pi >{\sqrt {\frac {2AIC}{\lambda }}}=\delta } 3640:, G. Hadley, Analysis of Inventory Systems, Prentice Hall 1963 3829:, Vol. III, Issue 12, December 2015, accessed 9 February 2024 3827:
International Journal of Economics, Commerce & Management
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The optimal value Q* may also be found by recognizing that
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Harris, Ford W. (1913). "How many parts to make at once".
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Operations and Production Systems with Multiple Objectives
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Q* is independent of P; it is a function of only K, D, h.
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Similarly, if we choose 300 for the order quantity, then
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is the rate of demand. The backorder cost per cycle is:
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a cost for each unit held in storage, commonly known as
425:{\displaystyle {0}=-{\frac {DK}{Q^{2}}}+{\frac {h}{2}}} 720: 3357: 3290: 3082: 2864: 2826: 2800: 2767: 2732: 2680: 2657: 2631: 2596: 2447: 2307: 2097: 2066: 1914: 1858: 1812: 1783: 1763: 1585: 1562: 1435: 1300: 1208: 1116: 1027: 989: 894: 855: 767: 714:
where the non-negative quadratic term disappears for
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Solving for Q gives Q* (the optimal order quantity):
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number can be determined from the other parameters.
3863:(Factory Management Series), Chicago: Shaw (1915) 3376: 3343: 3269: 3067: 2847: 2812: 2786: 2754: 2718: 2666: 2643: 2617: 2579: 2423: 2292: 2076: 2049: 1897: 1844: 1798: 1769: 1746: 1568: 1545: 1373: 1281: 1189: 1100: 1011: 972: 881: 817: 753: 703: 540: 481: 424: 350: 256: 230: 208: 186: 157: 135: 113: 3901:"Ford Whitman Harris's economical lot size model" 2855:solving the preceding quadratic equation yields: 2820:then there shouldn't be any inventory system. If 273:Total cost function and derivation of EOQ formula 45:, is the order quantity that minimizes the total 882:{\displaystyle {\sqrt {\frac {2D\cdot K}{h}}}} 541:{\displaystyle Q^{*}={\sqrt {\frac {2DK}{h}}}} 3934:International Journal of Production Economics 3905:International Journal of Production Economics 3776:International Journal of Production Economics 3613:International Journal of Production Economics 3551:International Journal of Production Economics 1413:Design of optimal quantity discount schedules 833:Annual requirement quantity (D) = 10000 units 8: 3270:{\displaystyle Q^{*}=\left^{1/2}\left^{1/2}} 3398:model, has also been used to determine the 3344:{\displaystyle r_{h}^{*}=\mu -mQ^{*}-s^{*}} 1101:{\displaystyle =P\cdot D+K(D/EOQ)+h(EOQ/2)} 143:= purchase unit price, unit production cost 3652:Engineering Costs and Production Economics 818:{\displaystyle T_{min}={\sqrt {2hDK}}+PD.} 3995:Ventura, Robert; Samuel, Stephen (2016). 3974: 3690: 3364: 3356: 3335: 3322: 3300: 3295: 3289: 3257: 3253: 3222: 3221: 3204: 3188: 3162: 3146: 3142: 3126: 3105: 3104: 3101: 3087: 3081: 3050: 3046: 3035: 3010: 3000: 2980: 2970: 2906: 2882: 2881: 2869: 2863: 2828: 2827: 2825: 2799: 2772: 2766: 2746: 2731: 2687: 2679: 2656: 2630: 2598: 2597: 2595: 2547: 2514: 2513: 2498: 2474: 2473: 2464: 2453: 2452: 2446: 2401: 2400: 2390: 2371: 2338: 2315: 2314: 2308: 2306: 2254: 2240: 2225: 2224: 2214: 2193: 2161: 2150: 2137: 2128: 2105: 2104: 2098: 2096: 2068: 2067: 2065: 2038: 2023: 2022: 2012: 1987: 1978: 1941: 1925: 1916: 1915: 1913: 1887: 1863: 1857: 1836: 1817: 1811: 1785: 1784: 1782: 1762: 1724: 1709: 1708: 1705: 1687: 1682: 1664: 1663: 1653: 1621: 1616: 1611: 1596: 1595: 1584: 1561: 1534: 1498: 1488: 1456: 1451: 1446: 1434: 1354: 1328: 1299: 1262: 1236: 1207: 1170: 1144: 1115: 1087: 1052: 1026: 993: 988: 983:Number of orders per year (based on EOQ) 944: 898: 893: 856: 854: 787: 772: 766: 738: 727: 719: 673: 664: 650: 639: 615: 588: 570: 562: 518: 509: 503: 461: 449: 443: 412: 401: 387: 376: 374: 338: 322: 302: 249: 223: 201: 178: 172: 150: 128: 106: 3377:{\displaystyle m\leq {\frac {\tau }{T}}} 1012:{\displaystyle ={\frac {10000}{400}}=25} 3491: 482:{\displaystyle Q^{*2}={\frac {2DK}{h}}} 3823:Inventory Management through EOQ Model 2755:{\displaystyle \pi \lambda >K_{w}} 1422:Backordering costs and multiple items 7: 4013:10.1016/j.applthermaleng.2016.02.024 3955:Production and Operations Management 3679:The Journal of Economic Perspectives 3502:Production and Operations Management 1898:{\displaystyle T_{1}=(Q-s)/\lambda } 238:= fixed cost per order, setup cost ( 57:. It is one of the oldest classical 3869:Factory, the Magazine of Management 3812:, Canton, Ohio, US, 29–30 July 2010 3351:; with m being the largest integer 2848:{\displaystyle {\hat {\pi }}\neq 0} 61:models. The model was developed by 3761:10.1111/j.1540-5915.1974.tb00592.x 3527:Production and operations analysis 3428:The EOQ model and its sister, the 2638: 2323: 2311: 2113: 2101: 934: 25: 4038:Vol. III, Issue 12, December 2015 842:Yearly carrying cost per unit = 4 3821:Guga, E. and Musa, O. (2015) in 761:which provides the cost minimum 3529:. McGraw Hill Higher Education. 3480:Economic lot scheduling problem 2813:{\displaystyle \pi <\delta } 2618:{\displaystyle {\hat {\pi }}=0} 1852:, T being the cycle length and 754:{\textstyle Q={\sqrt {2DK/h}},} 3242: 3227: 3218: 3201: 3191: 3131: 3110: 3032: 3022: 3015: 2985: 2956: 2938: 2903: 2887: 2878: 2833: 2603: 2544: 2534: 2519: 2491: 2479: 2458: 2448: 2406: 2365: 2353: 2281: 2269: 2230: 2190: 2177: 2077:{\displaystyle {\mathcal {K}}} 2044: 2028: 1997: 1975: 1962: 1884: 1872: 1790: 1714: 1669: 1601: 1531: 1518: 1485: 1464: 1362: 1348: 1336: 1322: 1270: 1256: 1244: 1230: 1178: 1164: 1152: 1138: 1095: 1075: 1066: 1046: 661: 630: 1: 3788:10.1016/s0925-5273(99)00044-4 1845:{\displaystyle T_{2}=T-T_{1}} 1799:{\displaystyle {\hat {\pi }}} 121:= total annual inventory cost 3899:Erlenkotter, Donald (2014). 3664:10.1016/0167-188X(87)90025-5 3499:Hax, AC; Candea, D. (1984), 3465:Economic production quantity 3430:economic production quantity 3394:A version of the model, the 3389:economic production quantity 3384:and μ the lead time demand. 2667:{\displaystyle \pi \lambda } 65:in 1913, but the consultant 4001:Applied Thermal Engineering 1387:Extensions of the EOQ model 39:financial purchase quantity 27:Production scheduling model 4069: 3946:10.1016/j.ijpe.2016.09.017 3917:10.1016/j.ijpe.2013.12.008 3846:, accessed 9 February 2024 3625:10.1016/j.ijpe.2016.09.017 3563:10.1016/j.ijpe.2016.09.017 849:Economic order quantity = 3989:10.1007/978-1-4614-7639-9 3726:. John Wiley & Sons. 2644:{\displaystyle s=\infty } 3525:Nahmias, Steven (2005). 3284:, the reorder point is: 1569:{\displaystyle \lambda } 216:= annual demand quantity 194:= optimal order quantity 43:economic buying quantity 3885:Harvard Business Review 2787:{\displaystyle s^{*}=0} 836:Cost per order (K) = 40 496:Economic Order Quantity 31:Economic order quantity 4053:Inventory optimization 3838:Cargal, J. M. (2003), 3590:10.1287/mnsc.1070.0829 3475:Dynamic lot size model 3378: 3345: 3271: 3069: 2849: 2814: 2788: 2756: 2720: 2668: 2645: 2619: 2581: 2425: 2294: 2078: 2051: 1899: 1846: 1800: 1771: 1748: 1628: 1570: 1547: 1463: 1375: 1283: 1191: 1102: 1013: 974: 883: 819: 755: 705: 542: 483: 426: 352: 258: 232: 210: 188: 159: 137: 115: 77:EOQ applies only when 3722:Malakooti, B (2013). 3379: 3346: 3272: 3070: 2850: 2815: 2789: 2757: 2721: 2669: 2646: 2620: 2582: 2426: 2295: 2079: 2052: 1900: 1847: 1806:are backorder costs, 1801: 1772: 1749: 1607: 1571: 1548: 1442: 1376: 1284: 1192: 1103: 1014: 975: 884: 839:Cost per unit (P)= 50 820: 756: 706: 543: 484: 427: 353: 259: 233: 211: 189: 187:{\displaystyle Q^{*}} 160: 138: 116: 59:production scheduling 3701:10.1257/jep.24.1.183 3355: 3288: 3080: 2862: 2824: 2798: 2765: 2730: 2678: 2655: 2629: 2594: 2445: 2305: 2095: 2064: 1912: 1856: 1810: 1781: 1770:{\displaystyle \pi } 1761: 1583: 1560: 1433: 1298: 1206: 1114: 1025: 987: 892: 853: 845:Market interest = 2% 765: 718: 561: 502: 442: 373: 301: 248: 222: 200: 171: 149: 127: 105: 55:inventory management 3305: 2086:partial derivatives 1692: 3967:10.1111/poms.12795 3578:Management Science 3435:logarithmic tables 3374: 3341: 3291: 3267: 3065: 2845: 2810: 2784: 2752: 2716: 2664: 2641: 2615: 2577: 2436:quadratic equation 2421: 2290: 2074: 2047: 1895: 1842: 1796: 1767: 1744: 1678: 1566: 1543: 1392:Quantity discounts 1371: 1279: 1187: 1098: 1009: 970: 879: 815: 751: 701: 538: 479: 422: 348: 254: 228: 206: 184: 155: 133: 111: 3749:Decision Sciences 3733:978-1-118-58537-5 3415:Imperfect quality 3372: 3246: 3230: 3183: 3136: 3134: 3113: 3020: 3018: 2990: 2988: 2890: 2836: 2708: 2707: 2606: 2522: 2482: 2461: 2409: 2398: 2379: 2351: 2330: 2267: 2233: 2222: 2169: 2143: 2120: 2031: 2020: 1995: 1954: 1933: 1793: 1739: 1717: 1672: 1661: 1604: 1516: 1001: 968: 967: 939: 938: 877: 876: 801: 746: 687: 658: 628: 601: 583: 536: 535: 477: 420: 407: 346: 330: 257:{\displaystyle h} 231:{\displaystyle K} 209:{\displaystyle D} 158:{\displaystyle Q} 136:{\displaystyle P} 114:{\displaystyle T} 37:), also known as 16:(Redirected from 4060: 4016: 3980: 3978: 3949: 3928: 3892: 3876: 3859:Harris, Ford W. 3847: 3836: 3830: 3819: 3813: 3806: 3800: 3799: 3771: 3765: 3764: 3744: 3738: 3737: 3719: 3713: 3712: 3694: 3674: 3668: 3667: 3647: 3641: 3635: 3629: 3628: 3608: 3602: 3601: 3573: 3567: 3566: 3546: 3540: 3537: 3531: 3530: 3522: 3516: 3515: 3496: 3470:Newsvendor model 3383: 3381: 3380: 3375: 3373: 3365: 3350: 3348: 3347: 3342: 3340: 3339: 3327: 3326: 3304: 3299: 3276: 3274: 3273: 3268: 3266: 3265: 3261: 3252: 3248: 3247: 3245: 3232: 3231: 3223: 3210: 3209: 3208: 3189: 3184: 3182: 3174: 3163: 3155: 3154: 3150: 3141: 3137: 3135: 3127: 3125: 3115: 3114: 3106: 3102: 3092: 3091: 3074: 3072: 3071: 3066: 3064: 3060: 3059: 3058: 3054: 3045: 3041: 3040: 3039: 3021: 3019: 3011: 3009: 3001: 2996: 2992: 2991: 2989: 2981: 2979: 2971: 2914: 2913: 2892: 2891: 2883: 2874: 2873: 2854: 2852: 2851: 2846: 2838: 2837: 2829: 2819: 2817: 2816: 2811: 2793: 2791: 2790: 2785: 2777: 2776: 2761: 2759: 2758: 2753: 2751: 2750: 2725: 2723: 2722: 2717: 2709: 2703: 2689: 2688: 2673: 2671: 2670: 2665: 2650: 2648: 2647: 2642: 2624: 2622: 2621: 2616: 2608: 2607: 2599: 2586: 2584: 2583: 2578: 2552: 2551: 2524: 2523: 2515: 2503: 2502: 2484: 2483: 2475: 2469: 2468: 2463: 2462: 2454: 2430: 2428: 2427: 2422: 2411: 2410: 2402: 2399: 2391: 2380: 2372: 2352: 2347: 2339: 2331: 2329: 2321: 2320: 2319: 2309: 2299: 2297: 2296: 2291: 2268: 2263: 2255: 2250: 2246: 2245: 2244: 2235: 2234: 2226: 2223: 2215: 2198: 2197: 2170: 2162: 2154: 2144: 2142: 2141: 2129: 2121: 2119: 2111: 2110: 2109: 2099: 2083: 2081: 2080: 2075: 2073: 2072: 2056: 2054: 2053: 2048: 2043: 2042: 2033: 2032: 2024: 2021: 2013: 1996: 1988: 1983: 1982: 1955: 1953: 1942: 1934: 1926: 1921: 1920: 1904: 1902: 1901: 1896: 1891: 1868: 1867: 1851: 1849: 1848: 1843: 1841: 1840: 1822: 1821: 1805: 1803: 1802: 1797: 1795: 1794: 1786: 1776: 1774: 1773: 1768: 1753: 1751: 1750: 1745: 1740: 1738: 1730: 1729: 1728: 1719: 1718: 1710: 1706: 1691: 1686: 1674: 1673: 1665: 1662: 1654: 1627: 1626: 1625: 1615: 1606: 1605: 1597: 1575: 1573: 1572: 1567: 1552: 1550: 1549: 1544: 1539: 1538: 1517: 1515: 1507: 1499: 1462: 1461: 1460: 1450: 1380: 1378: 1377: 1372: 1358: 1332: 1288: 1286: 1285: 1280: 1266: 1240: 1196: 1194: 1193: 1188: 1174: 1148: 1107: 1105: 1104: 1099: 1091: 1056: 1018: 1016: 1015: 1010: 1002: 994: 979: 977: 976: 971: 969: 963: 946: 945: 940: 937: 917: 900: 899: 888: 886: 885: 880: 878: 872: 858: 857: 824: 822: 821: 816: 802: 788: 783: 782: 760: 758: 757: 752: 747: 742: 728: 710: 708: 707: 702: 688: 674: 669: 668: 659: 654: 640: 629: 627: 616: 602: 597: 589: 584: 579: 571: 547: 545: 544: 539: 537: 531: 520: 519: 514: 513: 488: 486: 485: 480: 478: 473: 462: 457: 456: 431: 429: 428: 423: 421: 413: 408: 406: 405: 396: 388: 380: 357: 355: 354: 349: 347: 339: 331: 323: 266:opportunity cost 263: 261: 260: 255: 237: 235: 234: 229: 215: 213: 212: 207: 193: 191: 190: 185: 183: 182: 165:= order quantity 164: 162: 161: 156: 142: 140: 139: 134: 120: 118: 117: 112: 21: 4068: 4067: 4063: 4062: 4061: 4059: 4058: 4057: 4043: 4042: 4028: 3994: 3952: 3931: 3898: 3882: 3875:: 135–136, 152. 3866: 3861:Operations Cost 3856: 3854:Further reading 3851: 3850: 3844:Troy University 3840:The EOQ Formula 3837: 3833: 3820: 3816: 3807: 3803: 3773: 3772: 3768: 3746: 3745: 3741: 3734: 3721: 3720: 3716: 3692:10.1.1.730.8784 3676: 3675: 3671: 3649: 3648: 3644: 3636: 3632: 3610: 3609: 3605: 3575: 3574: 3570: 3548: 3547: 3543: 3538: 3534: 3524: 3523: 3519: 3513: 3498: 3497: 3493: 3488: 3451: 3426: 3417: 3353: 3352: 3331: 3318: 3286: 3285: 3211: 3200: 3190: 3175: 3164: 3161: 3157: 3156: 3103: 3097: 3096: 3083: 3078: 3077: 3031: 3002: 2972: 2963: 2959: 2937: 2933: 2932: 2919: 2915: 2902: 2865: 2860: 2859: 2822: 2821: 2796: 2795: 2794:is optimal, if 2768: 2763: 2762: 2742: 2728: 2727: 2690: 2676: 2675: 2653: 2652: 2627: 2626: 2592: 2591: 2543: 2494: 2451: 2443: 2442: 2340: 2322: 2310: 2303: 2302: 2256: 2236: 2189: 2149: 2145: 2133: 2112: 2100: 2093: 2092: 2088:equal to zero: 2062: 2061: 2034: 1974: 1946: 1910: 1909: 1859: 1854: 1853: 1832: 1813: 1808: 1807: 1779: 1778: 1759: 1758: 1731: 1720: 1707: 1617: 1581: 1580: 1558: 1557: 1530: 1508: 1500: 1452: 1431: 1430: 1424: 1415: 1394: 1389: 1296: 1295: 1204: 1203: 1112: 1111: 1023: 1022: 985: 984: 947: 918: 901: 890: 889: 859: 851: 850: 830: 768: 763: 762: 716: 715: 660: 620: 590: 572: 559: 558: 549: 521: 505: 500: 499: 463: 445: 440: 439: 397: 389: 371: 370: 299: 298: 275: 246: 245: 220: 219: 198: 197: 174: 169: 168: 147: 146: 125: 124: 103: 102: 99: 75: 28: 23: 22: 15: 12: 11: 5: 4066: 4064: 4056: 4055: 4045: 4044: 4041: 4040: 4036:Piasecki, D., 4034: 4027: 4026:External links 4024: 4023: 4022: 4017: 3992: 3981: 3976:2027.42/142450 3961:(2): 368–383. 3950: 3929: 3896: 3893: 3880: 3877: 3864: 3855: 3852: 3849: 3848: 3831: 3814: 3801: 3782:(1–3): 59–64. 3766: 3739: 3732: 3714: 3685:(1): 183–201. 3669: 3642: 3630: 3603: 3568: 3541: 3532: 3517: 3511: 3490: 3489: 3487: 3484: 3483: 3482: 3477: 3472: 3467: 3462: 3457: 3450: 3447: 3425: 3422: 3416: 3413: 3371: 3368: 3363: 3360: 3338: 3334: 3330: 3325: 3321: 3317: 3314: 3311: 3308: 3303: 3298: 3294: 3278: 3277: 3264: 3260: 3256: 3251: 3244: 3241: 3238: 3235: 3229: 3226: 3220: 3217: 3214: 3207: 3203: 3199: 3196: 3193: 3187: 3181: 3178: 3173: 3170: 3167: 3160: 3153: 3149: 3145: 3140: 3133: 3130: 3124: 3121: 3118: 3112: 3109: 3100: 3095: 3090: 3086: 3075: 3063: 3057: 3053: 3049: 3044: 3038: 3034: 3030: 3027: 3024: 3017: 3014: 3008: 3005: 2999: 2995: 2987: 2984: 2978: 2975: 2969: 2966: 2962: 2958: 2955: 2952: 2949: 2946: 2943: 2940: 2936: 2931: 2928: 2925: 2922: 2918: 2912: 2909: 2905: 2901: 2898: 2895: 2889: 2886: 2880: 2877: 2872: 2868: 2844: 2841: 2835: 2832: 2809: 2806: 2803: 2783: 2780: 2775: 2771: 2749: 2745: 2741: 2738: 2735: 2715: 2712: 2706: 2702: 2699: 2696: 2693: 2686: 2683: 2663: 2660: 2640: 2637: 2634: 2625:either s=0 or 2614: 2611: 2605: 2602: 2588: 2587: 2576: 2573: 2570: 2567: 2564: 2561: 2558: 2555: 2550: 2546: 2542: 2539: 2536: 2533: 2530: 2527: 2521: 2518: 2512: 2509: 2506: 2501: 2497: 2493: 2490: 2487: 2481: 2478: 2472: 2467: 2460: 2457: 2450: 2432: 2431: 2420: 2417: 2414: 2408: 2405: 2397: 2394: 2389: 2386: 2383: 2378: 2375: 2370: 2367: 2364: 2361: 2358: 2355: 2350: 2346: 2343: 2337: 2334: 2328: 2325: 2318: 2313: 2300: 2289: 2286: 2283: 2280: 2277: 2274: 2271: 2266: 2262: 2259: 2253: 2249: 2243: 2239: 2232: 2229: 2221: 2218: 2213: 2210: 2207: 2204: 2201: 2196: 2192: 2188: 2185: 2182: 2179: 2176: 2173: 2168: 2165: 2160: 2157: 2153: 2148: 2140: 2136: 2132: 2127: 2124: 2118: 2115: 2108: 2103: 2071: 2058: 2057: 2046: 2041: 2037: 2030: 2027: 2019: 2016: 2011: 2008: 2005: 2002: 1999: 1994: 1991: 1986: 1981: 1977: 1973: 1970: 1967: 1964: 1961: 1958: 1952: 1949: 1945: 1940: 1937: 1932: 1929: 1924: 1919: 1894: 1890: 1886: 1883: 1880: 1877: 1874: 1871: 1866: 1862: 1839: 1835: 1831: 1828: 1825: 1820: 1816: 1792: 1789: 1766: 1755: 1754: 1743: 1737: 1734: 1727: 1723: 1716: 1713: 1704: 1701: 1698: 1695: 1690: 1685: 1681: 1677: 1671: 1668: 1660: 1657: 1652: 1649: 1646: 1643: 1640: 1637: 1634: 1631: 1624: 1620: 1614: 1610: 1603: 1600: 1594: 1591: 1588: 1565: 1554: 1553: 1542: 1537: 1533: 1529: 1526: 1523: 1520: 1514: 1511: 1506: 1503: 1497: 1494: 1491: 1487: 1484: 1481: 1478: 1475: 1472: 1469: 1466: 1459: 1455: 1449: 1445: 1441: 1438: 1423: 1420: 1414: 1411: 1406: 1405: 1401: 1393: 1390: 1388: 1385: 1370: 1367: 1364: 1361: 1357: 1353: 1350: 1347: 1344: 1341: 1338: 1335: 1331: 1327: 1324: 1321: 1318: 1315: 1312: 1309: 1306: 1303: 1278: 1275: 1272: 1269: 1265: 1261: 1258: 1255: 1252: 1249: 1246: 1243: 1239: 1235: 1232: 1229: 1226: 1223: 1220: 1217: 1214: 1211: 1186: 1183: 1180: 1177: 1173: 1169: 1166: 1163: 1160: 1157: 1154: 1151: 1147: 1143: 1140: 1137: 1134: 1131: 1128: 1125: 1122: 1119: 1097: 1094: 1090: 1086: 1083: 1080: 1077: 1074: 1071: 1068: 1065: 1062: 1059: 1055: 1051: 1048: 1045: 1042: 1039: 1036: 1033: 1030: 1008: 1005: 1000: 997: 992: 966: 962: 959: 956: 953: 950: 943: 936: 933: 930: 927: 924: 921: 916: 913: 910: 907: 904: 897: 875: 871: 868: 865: 862: 847: 846: 843: 840: 837: 834: 829: 826: 814: 811: 808: 805: 800: 797: 794: 791: 786: 781: 778: 775: 771: 750: 745: 741: 737: 734: 731: 726: 723: 712: 711: 700: 697: 694: 691: 686: 683: 680: 677: 672: 667: 663: 657: 653: 649: 646: 643: 638: 635: 632: 626: 623: 619: 614: 611: 608: 605: 600: 596: 593: 587: 582: 578: 575: 569: 566: 534: 530: 527: 524: 517: 512: 508: 494: 490: 489: 476: 472: 469: 466: 460: 455: 452: 448: 433: 432: 419: 416: 411: 404: 400: 395: 392: 386: 383: 379: 360: 359: 345: 342: 337: 334: 329: 326: 321: 318: 315: 312: 309: 306: 295: 294: 291: 288: 274: 271: 270: 269: 253: 243: 227: 217: 205: 195: 181: 177: 166: 154: 144: 132: 122: 110: 98: 95: 74: 71: 63:Ford W. Harris 51:ordering costs 26: 24: 14: 13: 10: 9: 6: 4: 3: 2: 4065: 4054: 4051: 4050: 4048: 4039: 4035: 4033: 4032:The EOQ Model 4030: 4029: 4025: 4021: 4018: 4014: 4010: 4006: 4002: 3998: 3993: 3990: 3986: 3982: 3977: 3972: 3968: 3964: 3960: 3956: 3951: 3947: 3943: 3939: 3935: 3930: 3926: 3922: 3918: 3914: 3910: 3906: 3902: 3897: 3894: 3890: 3886: 3881: 3878: 3874: 3870: 3865: 3862: 3858: 3857: 3853: 3845: 3841: 3835: 3832: 3828: 3824: 3818: 3815: 3811: 3805: 3802: 3797: 3793: 3789: 3785: 3781: 3777: 3770: 3767: 3762: 3758: 3754: 3750: 3743: 3740: 3735: 3729: 3725: 3718: 3715: 3710: 3706: 3702: 3698: 3693: 3688: 3684: 3680: 3673: 3670: 3665: 3661: 3657: 3653: 3646: 3643: 3639: 3634: 3631: 3626: 3622: 3618: 3614: 3607: 3604: 3599: 3595: 3591: 3587: 3584:(4): 777–92. 3583: 3579: 3572: 3569: 3564: 3560: 3556: 3552: 3545: 3542: 3536: 3533: 3528: 3521: 3518: 3514: 3512:9780137248803 3508: 3504: 3503: 3495: 3492: 3485: 3481: 3478: 3476: 3473: 3471: 3468: 3466: 3463: 3461: 3458: 3456: 3455:Reorder point 3453: 3452: 3448: 3446: 3444: 3440: 3436: 3431: 3423: 3421: 3414: 3412: 3409: 3407: 3403: 3401: 3397: 3392: 3390: 3385: 3369: 3366: 3361: 3358: 3336: 3332: 3328: 3323: 3319: 3315: 3312: 3309: 3306: 3301: 3296: 3292: 3283: 3280:If there are 3262: 3258: 3254: 3249: 3239: 3236: 3233: 3224: 3215: 3212: 3205: 3197: 3194: 3185: 3179: 3176: 3171: 3168: 3165: 3158: 3151: 3147: 3143: 3138: 3128: 3122: 3119: 3116: 3107: 3098: 3093: 3088: 3084: 3076: 3061: 3055: 3051: 3047: 3042: 3036: 3028: 3025: 3012: 3006: 3003: 2997: 2993: 2982: 2976: 2973: 2967: 2964: 2960: 2953: 2950: 2947: 2944: 2941: 2934: 2929: 2926: 2923: 2920: 2916: 2910: 2907: 2899: 2896: 2893: 2884: 2875: 2870: 2866: 2858: 2857: 2856: 2842: 2839: 2830: 2807: 2804: 2801: 2781: 2778: 2773: 2769: 2747: 2743: 2739: 2736: 2733: 2713: 2710: 2704: 2700: 2697: 2694: 2691: 2684: 2681: 2661: 2658: 2635: 2632: 2612: 2609: 2600: 2574: 2571: 2568: 2565: 2562: 2559: 2556: 2553: 2548: 2540: 2537: 2531: 2528: 2525: 2516: 2510: 2507: 2504: 2499: 2495: 2488: 2485: 2476: 2470: 2465: 2455: 2441: 2440: 2439: 2437: 2418: 2415: 2412: 2403: 2395: 2392: 2387: 2384: 2381: 2376: 2373: 2368: 2362: 2359: 2356: 2348: 2344: 2341: 2335: 2332: 2326: 2301: 2287: 2284: 2278: 2275: 2272: 2264: 2260: 2257: 2251: 2247: 2241: 2237: 2227: 2219: 2216: 2211: 2208: 2205: 2202: 2199: 2194: 2186: 2183: 2180: 2174: 2171: 2166: 2163: 2158: 2155: 2151: 2146: 2138: 2134: 2130: 2125: 2122: 2116: 2091: 2090: 2089: 2087: 2039: 2035: 2025: 2017: 2014: 2009: 2006: 2003: 2000: 1992: 1989: 1984: 1979: 1971: 1968: 1965: 1959: 1956: 1950: 1947: 1943: 1938: 1935: 1930: 1927: 1922: 1908: 1907: 1906: 1892: 1888: 1881: 1878: 1875: 1869: 1864: 1860: 1837: 1833: 1829: 1826: 1823: 1818: 1814: 1787: 1764: 1741: 1735: 1732: 1725: 1721: 1711: 1702: 1699: 1696: 1693: 1688: 1683: 1679: 1675: 1666: 1658: 1655: 1650: 1647: 1644: 1641: 1638: 1635: 1632: 1629: 1622: 1618: 1612: 1608: 1598: 1592: 1589: 1586: 1579: 1578: 1577: 1563: 1540: 1535: 1527: 1524: 1521: 1512: 1509: 1504: 1501: 1495: 1492: 1489: 1482: 1479: 1476: 1473: 1470: 1467: 1457: 1453: 1447: 1443: 1439: 1436: 1429: 1428: 1427: 1421: 1419: 1412: 1410: 1402: 1399: 1398: 1397: 1391: 1386: 1384: 1381: 1368: 1365: 1359: 1355: 1351: 1345: 1342: 1339: 1333: 1329: 1325: 1319: 1316: 1313: 1310: 1307: 1304: 1301: 1292: 1289: 1276: 1273: 1267: 1263: 1259: 1253: 1250: 1247: 1241: 1237: 1233: 1227: 1224: 1221: 1218: 1215: 1212: 1209: 1200: 1197: 1184: 1181: 1175: 1171: 1167: 1161: 1158: 1155: 1149: 1145: 1141: 1135: 1132: 1129: 1126: 1123: 1120: 1117: 1108: 1092: 1088: 1084: 1081: 1078: 1072: 1069: 1063: 1060: 1057: 1053: 1049: 1043: 1040: 1037: 1034: 1031: 1028: 1019: 1006: 1003: 998: 995: 990: 981: 964: 960: 957: 954: 951: 948: 941: 931: 928: 925: 922: 919: 914: 911: 908: 905: 902: 895: 873: 869: 866: 863: 860: 844: 841: 838: 835: 832: 831: 827: 825: 812: 809: 806: 803: 798: 795: 792: 789: 784: 779: 776: 773: 769: 748: 743: 739: 735: 732: 729: 724: 721: 698: 695: 692: 689: 684: 681: 678: 675: 670: 665: 655: 651: 647: 644: 641: 636: 633: 624: 621: 617: 612: 609: 606: 603: 598: 594: 591: 585: 580: 576: 573: 567: 564: 557: 556: 555: 552: 548: 532: 528: 525: 522: 515: 510: 506: 497: 493: 474: 470: 467: 464: 458: 453: 450: 446: 438: 437: 436: 417: 414: 409: 402: 398: 393: 390: 384: 381: 377: 369: 368: 367: 365: 343: 340: 335: 332: 327: 324: 319: 316: 313: 310: 307: 304: 297: 296: 292: 289: 286: 285: 284: 281: 278: 272: 267: 251: 244: 241: 225: 218: 203: 196: 179: 175: 167: 152: 145: 130: 123: 108: 101: 100: 96: 94: 90: 87: 85: 80: 72: 70: 68: 64: 60: 56: 52: 48: 47:holding costs 44: 40: 36: 32: 19: 4004: 4000: 3958: 3954: 3937: 3933: 3908: 3904: 3888: 3884: 3872: 3868: 3860: 3843: 3834: 3826: 3817: 3809: 3804: 3779: 3775: 3769: 3755:(1): 30–35. 3752: 3748: 3742: 3723: 3717: 3682: 3678: 3672: 3655: 3651: 3645: 3633: 3616: 3612: 3606: 3581: 3577: 3571: 3554: 3550: 3544: 3535: 3526: 3520: 3501: 3494: 3460:Safety stock 3443:spreadsheets 3427: 3418: 3410: 3404: 3400:money demand 3396:Baumol-Tobin 3393: 3386: 3279: 2589: 2433: 2060:To minimize 2059: 1756: 1555: 1425: 1416: 1407: 1395: 1382: 1293: 1290: 1201: 1198: 1109: 1020: 982: 980:= 400 units 848: 713: 553: 550: 498: 495: 491: 434: 361: 282: 279: 276: 239: 91: 88: 84:holding cost 76: 67:R. H. Wilson 66: 42: 38: 34: 30: 29: 18:EOQ equation 3940:: 216–228. 3619:: 216–228. 3557:: 216–228. 2084:impose the 1294:Total cost 1202:Total cost 1110:Total cost 1021:Total cost 492:Therefore: 4007:: 112–20. 3486:References 3439:slide rule 3424:Criticisms 3282:backorders 364:derivative 3925:153794306 3911:: 12–15. 3891:: 116–28. 3796:0925-5273 3687:CiteSeerX 3658:: 53–57. 3638:T. Whitin 3441:. Use of 3406:Malakooti 3367:τ 3362:≤ 3337:∗ 3329:− 3324:∗ 3313:− 3310:μ 3302:∗ 3228:^ 3225:π 3198:λ 3195:π 3186:− 3169:λ 3132:^ 3129:π 3111:^ 3108:π 3089:∗ 3029:λ 3026:π 3016:^ 3013:π 2998:− 2986:^ 2983:π 2945:λ 2927:λ 2924:π 2921:− 2908:− 2888:^ 2885:π 2871:∗ 2840:≠ 2834:^ 2831:π 2808:δ 2802:π 2774:∗ 2737:λ 2734:π 2714:δ 2705:λ 2682:π 2662:λ 2659:π 2639:∞ 2604:^ 2601:π 2560:λ 2554:− 2541:λ 2538:π 2526:λ 2520:^ 2517:π 2511:π 2480:^ 2477:π 2459:^ 2456:π 2407:^ 2404:π 2385:λ 2382:π 2360:− 2336:− 2324:∂ 2312:∂ 2276:− 2231:^ 2228:π 2206:λ 2203:π 2184:− 2152:λ 2126:− 2114:∂ 2102:∂ 2029:^ 2026:π 2004:λ 2001:π 1969:− 1928:λ 1893:λ 1879:− 1830:− 1791:^ 1788:π 1765:π 1736:λ 1715:^ 1712:π 1697:π 1676:λ 1670:^ 1667:π 1645:π 1630:λ 1609:∫ 1602:^ 1599:π 1587:π 1564:λ 1525:− 1513:λ 1480:λ 1477:− 1471:− 1444:∫ 1369:502083.33 1346:⋅ 1320:⋅ 1308:⋅ 1254:⋅ 1228:⋅ 1216:⋅ 1162:⋅ 1136:⋅ 1124:⋅ 1035:⋅ 958:⋅ 952:⋅ 935:% 929:⋅ 912:⋅ 906:⋅ 867:⋅ 637:− 511:∗ 451:∗ 385:− 180:∗ 97:Variables 4047:Category 3709:25703488 3598:20122426 3449:See also 1404:45*1500. 73:Overview 828:Example 283:Where: 3923:  3794:  3730:  3707:  3689:  3596:  3509:  1757:where 1277:502050 1185:502000 79:demand 3921:S2CID 3705:JSTOR 3594:JSTOR 3437:or a 2674:. If 1326:10000 1311:10000 1234:10000 1219:10000 1142:10000 1127:10000 996:10000 955:10000 909:10000 3792:ISSN 3728:ISBN 3507:ISBN 2805:< 2740:> 2685:> 1777:and 49:and 4009:doi 4005:101 3985:doi 3971:hdl 3963:doi 3942:doi 3938:187 3913:doi 3909:155 3784:doi 3757:doi 3697:doi 3660:doi 3621:doi 3617:187 3586:doi 3559:doi 3555:187 2726:or 2590:If 1352:300 1334:300 1260:500 1242:500 1168:400 1150:400 999:400 240:not 53:in 41:or 35:EOQ 4049:: 4003:. 3999:. 3969:. 3959:27 3957:. 3936:. 3919:. 3907:. 3903:. 3889:13 3887:. 3873:10 3871:. 3842:, 3825:, 3790:. 3780:64 3778:. 3751:. 3703:. 3695:. 3683:24 3681:. 3656:11 3654:. 3615:. 3592:. 3582:54 3580:. 3553:. 2438:: 1317:40 1305:50 1225:40 1213:50 1133:40 1121:50 1007:25 961:40 926:50 915:40 4015:. 4011:: 3991:. 3987:: 3979:. 3973:: 3965:: 3948:. 3944:: 3927:. 3915:: 3798:. 3786:: 3763:. 3759:: 3753:5 3736:. 3711:. 3699:: 3666:. 3662:: 3627:. 3623:: 3600:. 3588:: 3565:. 3561:: 3370:T 3359:m 3333:s 3320:Q 3316:m 3307:= 3297:h 3293:r 3263:2 3259:/ 3255:1 3250:] 3243:) 3240:C 3237:I 3234:+ 3219:( 3216:C 3213:I 3206:2 3202:) 3192:( 3180:C 3177:I 3172:A 3166:2 3159:[ 3152:2 3148:/ 3144:1 3139:] 3123:C 3120:I 3117:+ 3099:[ 3094:= 3085:Q 3062:) 3056:2 3052:/ 3048:1 3043:] 3037:2 3033:) 3023:( 3007:C 3004:I 2994:) 2977:C 2974:I 2968:+ 2965:1 2961:( 2957:) 2954:C 2951:I 2948:A 2942:2 2939:( 2935:[ 2930:+ 2917:( 2911:1 2904:] 2900:C 2897:I 2894:+ 2879:[ 2876:= 2867:s 2843:0 2782:0 2779:= 2770:s 2748:w 2744:K 2711:= 2701:C 2698:I 2695:A 2692:2 2636:= 2633:s 2613:0 2610:= 2575:0 2572:= 2569:C 2566:I 2563:A 2557:2 2549:2 2545:) 2535:( 2532:+ 2529:s 2508:2 2505:+ 2500:2 2496:s 2492:] 2489:C 2486:I 2471:+ 2466:2 2449:[ 2419:0 2416:= 2413:s 2396:Q 2393:1 2388:+ 2377:Q 2374:1 2369:+ 2366:) 2363:s 2357:Q 2354:( 2349:Q 2345:C 2342:I 2333:= 2327:s 2317:K 2288:0 2285:= 2282:) 2279:s 2273:Q 2270:( 2265:Q 2261:C 2258:I 2252:+ 2248:] 2242:2 2238:s 2220:2 2217:1 2212:+ 2209:s 2200:+ 2195:2 2191:) 2187:s 2181:Q 2178:( 2175:C 2172:I 2167:2 2164:1 2159:+ 2156:A 2147:[ 2139:2 2135:Q 2131:1 2123:= 2117:Q 2107:K 2070:K 2045:] 2040:2 2036:s 2018:2 2015:1 2010:+ 2007:s 1998:[ 1993:Q 1990:1 1985:+ 1980:2 1976:) 1972:s 1966:Q 1963:( 1960:C 1957:I 1951:Q 1948:2 1944:1 1939:+ 1936:A 1931:Q 1923:= 1918:K 1889:/ 1885:) 1882:s 1876:Q 1873:( 1870:= 1865:1 1861:T 1838:1 1834:T 1827:T 1824:= 1819:2 1815:T 1742:, 1733:2 1726:2 1722:s 1703:+ 1700:s 1694:= 1689:2 1684:2 1680:T 1659:2 1656:1 1651:+ 1648:s 1642:= 1639:t 1636:d 1633:t 1623:2 1619:T 1613:0 1593:+ 1590:s 1541:, 1536:2 1532:) 1528:s 1522:Q 1519:( 1510:2 1505:C 1502:I 1496:= 1493:t 1490:d 1486:) 1483:t 1474:s 1468:Q 1465:( 1458:1 1454:T 1448:0 1440:C 1437:I 1366:= 1363:) 1360:2 1356:/ 1349:( 1343:5 1340:+ 1337:) 1330:/ 1323:( 1314:+ 1302:= 1274:= 1271:) 1268:2 1264:/ 1257:( 1251:5 1248:+ 1245:) 1238:/ 1231:( 1222:+ 1210:= 1182:= 1179:) 1176:2 1172:/ 1165:( 1159:5 1156:+ 1153:) 1146:/ 1139:( 1130:+ 1118:= 1096:) 1093:2 1089:/ 1085:Q 1082:O 1079:E 1076:( 1073:h 1070:+ 1067:) 1064:Q 1061:O 1058:E 1054:/ 1050:D 1047:( 1044:K 1041:+ 1038:D 1032:P 1029:= 1004:= 991:= 965:5 949:2 942:= 932:2 923:+ 920:4 903:2 896:= 874:h 870:K 864:D 861:2 813:. 810:D 807:P 804:+ 799:K 796:D 793:h 790:2 785:= 780:n 777:i 774:m 770:T 749:, 744:h 740:/ 736:K 733:D 730:2 725:= 722:Q 699:, 696:D 693:P 690:+ 685:K 682:D 679:h 676:2 671:+ 666:2 662:) 656:h 652:/ 648:K 645:D 642:2 634:Q 631:( 625:Q 622:2 618:h 613:= 610:D 607:P 604:+ 599:2 595:Q 592:h 586:+ 581:Q 577:K 574:D 568:= 565:T 533:h 529:K 526:D 523:2 516:= 507:Q 475:h 471:K 468:D 465:2 459:= 454:2 447:Q 418:2 415:h 410:+ 403:2 399:Q 394:K 391:D 382:= 378:0 358:. 344:2 341:Q 336:h 333:+ 328:Q 325:D 320:K 317:+ 314:D 311:P 308:= 305:T 252:h 226:K 204:D 176:Q 153:Q 131:P 109:T 33:( 20:)

Index

EOQ equation
holding costs
ordering costs
inventory management
production scheduling
Ford W. Harris
demand
holding cost
opportunity cost
derivative
partial derivatives
quadratic equation
backorders
economic production quantity
Baumol-Tobin
money demand
Malakooti
economic production quantity
logarithmic tables
slide rule
spreadsheets
Reorder point
Safety stock
Economic production quantity
Newsvendor model
Dynamic lot size model
Economic lot scheduling problem
Production and Operations Management
ISBN
9780137248803

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