Generalized EOQ formula using a new parameter: Coefficient of backorder attractiveness

Georghios P. Sphicas

International Journal of Production Economics, 2014, vol. 155, issue C, 143-147

Abstract: This paper introduces and examines a generalized EOQ formula, based on the model with linear and fixed backordering costs. The new square-root formula is a combination of two well-known classical models, the basic EOQ model without stockouts and the EOQ model with backorders and linear backordering costs. Helping to combine the two is a new parameter, a fractional coefficient capturing the attractiveness of backorders. The coefficient is explained and discussed. The paper concludes with a brief discussion of generalizations in EOQ models, including EPQ.

Keywords: EOQ formula; Inventory models; Backordering costs (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:155:y:2014:i:c:p:143-147

DOI: 10.1016/j.ijpe.2013.09.014

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