On the Lambert W function: Economic Order Quantity applications and pedagogical considerations

Stephen M. Disney and Roger D.H. Warburton

International Journal of Production Economics, 2012, vol. 140, issue 2, 756-764

Abstract: We illustrate the use of the Lambert W function by analysing two Economic Order Quantity (EOQ) scenarios: an EOQ model with perishable inventory; and a Net Present Value analysis of an EOQ problem with trim loss. Both scenarios are motivated by real-world situations. Via these two examples, we reflect upon the pedagogical aspects of using the Lambert W function. We present a Lambert W function ‘look-up’ table for classroom use and a Microsoft Excel ‘Add-In’ for self-study and practical use. We also illustrate the use of the Laplace transform to conduct NPV analyses of the EOQ model.

Keywords: Lambert W function; Economic Order Quantity; Net Present Value; Perishable inventory; Trim loss (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:140:y:2012:i:2:p:756-764

DOI: 10.1016/j.ijpe.2011.02.027

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