The economic order quantity (EOQ) and the economic production quantity (EPQ) are well-known and commonly used inventory control techniques. The standard results are easy to apply but are based on a number of unrealistic assumptions. One of the assumption is that the demand is normally distributed in any interval. In several practical cases the assumption about independence of successive demands...

We inspect how inflation target announcements are instrumental in building central bank credibility and shaping the public’s inflation expectations. Investigating the role of announcements in two early adopters of inflation targeting by using a time varying credibility measure, we find that both the accuracy and the frequency of inflation announcements have a positive impact on how much attenti...

Several authors have developed models for the EOQ when only a percentage of stockouts will be backordered. Most of these models are complicated, with equations unlike those for the EOQ with full backordering. In this paper we extend work by Pentico and Drake [The deterministic EOQ with partial backordering: a new approach. European Journal of Operational Research 2008; in press] that developed ...

The economic order quantity (EOQ) model is the simplest and earliest inventory model in the literature. Its simple mathematics is attributed to its assumptions, which are rarely met. Salameh and Jaber [2000. Economic production quantity model for items with imperfect quality. Int. J. Prod. Econ. 64, 59–64] addressed one of these assumptions that items received or produced are not of perfect qua...

One of the celebrated extensions of the economic order/production quantity (EOQ/EPQ) model is one that assumes a received shipment contains a fraction of imperfect (non-conforming) quality items, where these items, detected by 100% screening, are sold as a single batch at a discounted price. This paper revisits this model (Salameh and Jaber, 2000, Int. J. Prod. Econ. 64 (1), 59–64) and extends ...

The classical Economic Order Quantity (EPQ) models consider that the production rate is fixed and constant. But in many manufacturing and production processes the production rate is a function of stock on hand. For this sort of situations we develop and analyze an EPQ model with the assumption that the production rate is a function of the on-hand inventory and demand is a function of selling pr...

Trade credit is a well established promotional tool in the present competitive world and its impact on demand cannot be ignored. Businesses often use trade credit to increase their market share and, in turn, the profit. Undoubtedly, trade credit plays a great role in increasing the demand but it also involves a great risk of nonpayment. In order to reduce the risk of non-payment, businessman at...

Huang [ Journal of Statistics and Management Systems, Vol. 6 (2003), No. 2, pp. 171-180 ] studied the EOQ (Economic Order Quantity) and EPQ (Economic Production Quantity) models with backlogging and defective items using the algebraic approach. He assumed 100% inspection policy and the known proportion of defective items was removed prior to storage or use after the screening process. In this p...