EOQ extensions exploiting the Lambert W function

Roger D.H. Warburton

European Journal of Industrial Engineering, 2009, vol. 3, issue 1, 45-69

Abstract: We analyse several extensions to the Economic Order Quantity (EOQ) model: when the inventory deteriorates over time; when the demand contains a stock dependent term; and when the present value, or discounted cost, is included. We derive exact analytical expressions for the order that minimises the total cost, and in each case the Lambert W function arises, adding to the growing list of useful applications for this recently rediscovered function. The analytical solutions have immediate practical and pedagogic applications. [Received 06 September 2007; Revised 13 January 2008; Accepted 01 April 2008]

Keywords: economic order quantity; EOQ model; inventory deterioration; present value; Lambert W function; discounted cost; stock dependent terms. (search for similar items in EconPapers)
Date: 2009
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