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

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  • Disney, Stephen M.
  • Warburton, Roger D.H.

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.

Suggested Citation

  • Disney, Stephen M. & Warburton, Roger D.H., 2012. "On the Lambert W function: Economic Order Quantity applications and pedagogical considerations," International Journal of Production Economics, Elsevier, vol. 140(2), pages 756-764.
    • Handle: RePEc:eee:proeco:v:140:y:2012:i:2:p:756-764
    DOI: 10.1016/j.ijpe.2011.02.027
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    References listed on IDEAS

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    1. Roger D.H. Warburton, 2009. "EOQ extensions exploiting the Lambert W function," European Journal of Industrial Engineering, Inderscience Enterprises Ltd, vol. 3(1), pages 45-69.
    2. Warburton, R.D.H. & Disney, S.M., 2007. "Order and inventory variance amplification: The equivalence of discrete and continuous time analyses," International Journal of Production Economics, Elsevier, vol. 110(1-2), pages 128-137, October.
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    Cited by:

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