An economic order quantity model with a known price increase and partial backordering

Ata Allah Taleizadeh and David W. Pentico

European Journal of Operational Research, 2013, vol. 228, issue 3, 516-525

Abstract: A constant unit purchase cost is one of the main assumptions in the classic Economic Order Quantity model. In practice, suppliers sometimes face a known price increase. In this paper, we develop EOQ models with a known price increase and partial backordering under two different assumptions about when the increase will occur. We prove the concavity of the extra profit functions for both scenarios if a special order is placed just before the price increases. A solution method is proposed and numerical examples are presented.

Keywords: EOQ; Partial backordering; Known price increase (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S037722171300132X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:228:y:2013:i:3:p:516-525

DOI: 10.1016/j.ejor.2013.02.014

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().