An economic order quantity model with partial backordering and a special sale price

Ata Allah Taleizadeh, David W. Pentico, Mirbahador Aryanezhad and Seyed Mohammad Ghoreyshi

European Journal of Operational Research, 2012, vol. 221, issue 3, 571-583

Abstract: A constant unit purchase cost is one of the main assumptions in the classic economic order quantity model. In practice, suppliers sometimes offer special sale prices to stimulate sales or decrease inventories of certain items. In this paper we develop an EOQ model with a special sale price and partial backordering. We prove the convexity of the cost-reduction function if a special order is placed at the special sale price. A solution method is proposed and numerical examples are presented.

Keywords: Inventory; EOQ; Partial backordering; Special sale prices (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:221:y:2012:i:3:p:571-583

DOI: 10.1016/j.ejor.2012.03.032

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