Economic Order Quantity When Ordering Costs are Lot Size Dependent

Gupta Omprakash K

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: Classical EOQ model assumes that the ordering cost A is constant and independent of lot size. This paper deals with the case when A depends on the lot size and increases at a decreasing rate. Firstly A is assumed to increase in steps as a function of lot size . In both cases models are analyzed and procedures are given for determining the optimal lot size.

Date: 1987-05-01
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Persistent link: https://EconPapers.repec.org/RePEc:iim:iimawp:wp00752

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