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Closed-form solutions for Wee's and Martin's EOQ models with a temporary price discount

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  • Chang, Horng-Jinh
  • Lin, Wen-Feng
  • Ho, Jow-Fei

Abstract

In this article, we use closed-form solutions to solve Wee and Yu (1997) deteriorating inventory model with a temporary price discount and Martin's (1994) EOQ model with a temporary sale price. In Wee and Yu (1997) and Martin's (1994), the benefits during the temporary price discount purchase cycle are represented by their objective functions. Wee and Yu (1997) and Martin (1994) only used search methods to find approximate solutions. Following the theorems we suggested, you can find closed-form solution directly when there are integer operators involve in an objective function. Using the data of Wee and Yu (1997) and Martin (1994), we can find the results are more quick and more accurate.

Suggested Citation

  • Chang, Horng-Jinh & Lin, Wen-Feng & Ho, Jow-Fei, 2011. "Closed-form solutions for Wee's and Martin's EOQ models with a temporary price discount," International Journal of Production Economics, Elsevier, vol. 131(2), pages 528-534, June.
    • Handle: RePEc:eee:proeco:v:131:y:2011:i:2:p:528-534
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    References listed on IDEAS

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    1. Li, Chung-Lun, 2009. "A new solution method for the finite-horizon discrete-time EOQ problem," European Journal of Operational Research, Elsevier, vol. 197(1), pages 412-414, August.
    2. Wee, Hui-Ming & Wang, Wan-Tsu & Chung, Chun-Jen, 2009. "A modified method to compute economic order quantities without derivatives by cost-difference comparisons," European Journal of Operational Research, Elsevier, vol. 194(1), pages 336-338, April.
    3. Hui-Ming Wee & Yu, Jonas, 1997. "A deteriorating inventory model with a temporary price discount," International Journal of Production Economics, Elsevier, vol. 53(1), pages 81-90, November.
    4. Cárdenas-Barrón, Leopoldo Eduardo, 2009. "Optimal ordering policies in response to a discount offer: Extensions," International Journal of Production Economics, Elsevier, vol. 122(2), pages 774-782, December.
    5. Chung, Chun-Jen & Wee, Hui-Ming, 2008. "Green-component life-cycle value on design and reverse manufacturing in semi-closed supply chain," International Journal of Production Economics, Elsevier, vol. 113(2), pages 528-545, June.
    6. Sarker, Bhaba R. & Al Kindi, Mahmood, 2006. "Erratum to "Optimal ordering policies in response to discount offer" [International Journal of Production Economics 100 (2006) 195-211]," International Journal of Production Economics, Elsevier, vol. 103(2), pages 895-895, October.
    7. Martin, G. E., 1994. "Note on an EOQ model with a temporary sale price," International Journal of Production Economics, Elsevier, vol. 37(2-3), pages 241-243, December.
    8. Cárdenas-Barrón, Leopoldo Eduardo, 2009. "Optimal ordering policies in response to a discount offer: Corrections," International Journal of Production Economics, Elsevier, vol. 122(2), pages 783-789, December.
    9. Sarker, Bhaba R. & Al Kindi, Mahmood, 2006. "Optimal ordering policies in response to a discount offer," International Journal of Production Economics, Elsevier, vol. 100(2), pages 195-211, April.
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    Cited by:

    1. Yiju Wang & Hengxia Gao & Wei Xing, 2018. "Optimal replenishment and stocking strategies for inventory mechanism with a dynamically stochastic short-term price discount," Journal of Global Optimization, Springer, vol. 70(1), pages 27-53, January.
    2. Ata Allah Taleizadeh & Hadi Samimi & Babak Mohammadi, 2015. "Joint replenishment policy with backordering and special sale," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(7), pages 1172-1198, May.
    3. Taleizadeh, Ata Allah & Mohammadi, Babak & Cárdenas-Barrón, Leopoldo Eduardo & Samimi, Hadi, 2013. "An EOQ model for perishable product with special sale and shortage," International Journal of Production Economics, Elsevier, vol. 145(1), pages 318-338.
    4. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    5. Shaposhnik, Yaron & Herer, Yale T. & Naseraldin, Hussein, 2015. "Optimal ordering for a probabilistic one-time discount," European Journal of Operational Research, Elsevier, vol. 244(3), pages 803-814.

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