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...

Traditionally, inventory management experts have calculated a fixed economic order quantity (EOQ) that minimizes the cost of ordering and keeping stock. Some organizations use fixed maximum and minimum order quantity (MOQ) which ranges around EOQ for stocking various parts. These quantities are ordered at a specific stock level called the reorder point. The reorder point is calculated as the st...

In this paper, we use quasi-variational inequalities to provide a rigorous proof of the familiar square root formula for the optimal economic order quantity (EOQ) in the classical deterministic average cost inventory model.

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...

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 ...

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 paper proposes another realistic application of the economic order quantity EOQ model. Researchers have studied EOQ models that assume the received lot contains items that are perfect and imperfect. All models in the literature assume that the received lot goes through a 100% inspection to separate acceptable items from the non-acceptable items. This paper argues that 100% inspection is no...

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 classical optimization techniques are often used to derive and to assert the optimal solution for the well-known inventory models such as the economic order/production quantity (EOQ/EPQ) models. Recently, a new approach, without reference to the use of derivatives but with algebraic derivation, is presented to solve the above deterministic EOQ/EPQ models with/without shortages. To widen the...