The effect of continuous price change in the EOQ

E Erel

Omega, 1992, vol. 20, issue 4, 523-527

Abstract: The sensitivity of the basic economic order quantity (EOQ) model to continuous purchase price changes is explored. The phenomenon of continuous price changes exists in several countries and it is not likely to improve. The paper shows that using the conventional EOQ can be quite costly and far from optimal, if the holding cost rate is determined erroneously by ignoring the price change.

Keywords: inventory; economic; order; quantity; sensitivity; analysis (search for similar items in EconPapers)
Date: 1992
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Citations: View citations in EconPapers (14)

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