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.

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...

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...

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...

Ford Whitman Harris first presented the familiar economic order quantity (EOQ) model in a paper published in 1913. Even though Harris's original paper was disseminated widely, it apparently was unnoticed for many years before its rediscovery in 1988. During this period much confusion developed over the origin of the EOQ model. This paper explores the early literature on this model and traces th...