IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v155y2014icp143-147.html
   My bibliography  Save this article

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

Author

Listed:
  • Sphicas, Georghios P.

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.

Suggested Citation

  • Sphicas, Georghios P., 2014. "Generalized EOQ formula using a new parameter: Coefficient of backorder attractiveness," International Journal of Production Economics, Elsevier, vol. 155(C), pages 143-147.
  • Handle: RePEc:eee:proeco:v:155:y:2014:i:c:p:143-147
    DOI: 10.1016/j.ijpe.2013.09.014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527313004192
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jason Chang, S.K. & Chuang, Jones P.C. & Chen, Hsiao-Jung, 2005. "Short comments on technical note--The EOQ and EPQ models with shortages derived without derivatives," International Journal of Production Economics, Elsevier, vol. 97(2), pages 241-243, August.
    2. Yang, Gino K., 2007. "Note on sensitivity analysis of inventory model with partial backorders," European Journal of Operational Research, Elsevier, vol. 177(2), pages 865-871, March.
    3. Cardenas-Barron, Leopoldo Eduardo, 2001. "The economic production quantity (EPQ) with shortage derived algebraically," International Journal of Production Economics, Elsevier, vol. 70(3), pages 289-292, April.
    4. Minner, Stefan, 2007. "A note on how to compute economic order quantities without derivatives by cost comparisons," International Journal of Production Economics, Elsevier, vol. 105(1), pages 293-296, January.
    5. Grubbstrom, Robert W. & Erdem, Asli, 1999. "The EOQ with backlogging derived without derivatives," International Journal of Production Economics, Elsevier, vol. 59(1-3), pages 529-530, March.
    6. Pentico, David W. & Drake, Matthew J., 2009. "The deterministic EOQ with partial backordering: A new approach," European Journal of Operational Research, Elsevier, vol. 194(1), pages 102-113, April.
    7. Grubbstrom, Robert W., 1995. "Modelling production opportunities -- an historical overview," International Journal of Production Economics, Elsevier, vol. 41(1-3), pages 1-14, October.
    8. Sphicas, Georghios P., 2006. "EOQ and EPQ with linear and fixed backorder costs: Two cases identified and models analyzed without calculus," International Journal of Production Economics, Elsevier, vol. 100(1), pages 59-64, March.
    9. Francis Leung, Kit-Nam, 2008. "Technical note: A use of the complete squares method to solve and analyze a quadratic objective function with two decision variables exemplified via a deterministic inventory model with a mixture of b," International Journal of Production Economics, Elsevier, vol. 113(1), pages 275-281, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. San-José, L.A. & Sicilia, J. & García-Laguna, J., 2015. "Analysis of an EOQ inventory model with partial backordering and non-linear unit holding cost," Omega, Elsevier, vol. 54(C), pages 147-157.
    2. Jianghua Zhang & Felix T. S. Chan & Xinsheng Xu, 0. "The optimal order decisions of a risk-averse newsvendor under backlogging," Annals of Operations Research, Springer, vol. 0, pages 1-23.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leung, Kit-Nam Francis, 2010. "Some comments on "A simple method to compute economic order quantities"," European Journal of Operational Research, Elsevier, vol. 201(3), pages 960-961, March.
    2. Teng, Jinn-Tsair, 2009. "A simple method to compute economic order quantities," European Journal of Operational Research, Elsevier, vol. 198(1), pages 351-353, October.
    3. Chung, Kun-Jen, 2009. ""A note on the economic lot size of the integrated vendor-buyer inventory system derived without derivatives": A comment," European Journal of Operational Research, Elsevier, vol. 198(3), pages 979-982, November.
    4. Francis Leung, Kit-Nam, 2008. "Technical note: A use of the complete squares method to solve and analyze a quadratic objective function with two decision variables exemplified via a deterministic inventory model with a mixture of b," International Journal of Production Economics, Elsevier, vol. 113(1), pages 275-281, May.
    5. 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.
    6. Leung, Kit-Nam Francis, 2008. "Using the complete squares method to analyze a lot size model when the quantity backordered and the quantity received are both uncertain," European Journal of Operational Research, Elsevier, vol. 187(1), pages 19-30, May.
    7. San-José, Luis A. & Sicilia, Joaquín & García-Laguna, Juan, 2014. "Optimal lot size for a production–inventory system with partial backlogging and mixture of dispatching policies," International Journal of Production Economics, Elsevier, vol. 155(C), pages 194-203.
    8. Joaquín Sicilia & Luis San-José & Juan García-Laguna, 2012. "An inventory model where backordered demand ratio is exponentially decreasing with the waiting time," Annals of Operations Research, Springer, vol. 199(1), pages 137-155, October.
    9. Luo, Xu-Ren & Chou, Chih-sheng, 2018. "Technical note: Solving inventory models by algebraic method," International Journal of Production Economics, Elsevier, vol. 200(C), pages 130-133.
    10. Leung, Kit-Nam Francis, 2009. "A generalization of sensitivity of the inventory model with partial backorders," European Journal of Operational Research, Elsevier, vol. 196(2), pages 554-562, July.
    11. Minner, Stefan, 2007. "A note on how to compute economic order quantities without derivatives by cost comparisons," International Journal of Production Economics, Elsevier, vol. 105(1), pages 293-296, January.
    12. Pentico, David W. & Drake, Matthew J., 2011. "A survey of deterministic models for the EOQ and EPQ with partial backordering," European Journal of Operational Research, Elsevier, vol. 214(2), pages 179-198, October.
    13. Chang, Hung-Chi & Ho, Chia-Huei, 2010. "Exact closed-form solutions for "optimal inventory model for items with imperfect quality and shortage backordering"," Omega, Elsevier, vol. 38(3-4), pages 233-237, June.
    14. Zhang, Ren-qian & Kaku, Ikou & Xiao, Yi-yong, 2011. "Deterministic EOQ with partial backordering and correlated demand caused by cross-selling," European Journal of Operational Research, Elsevier, vol. 210(3), pages 537-551, May.
    15. Yonit Barron & Dror Hermel, 2017. "Shortage decision policies for a fluid production model with MAP arrivals," International Journal of Production Research, Taylor & Francis Journals, vol. 55(14), pages 3946-3969, July.
    16. Wee, Hui-Ming & Huang, Yen-Deng & Wang, Wan-Tsu & Cheng, Yung-Lung, 2014. "An EPQ model with partial backorders considering two backordering costs," Applied Mathematics and Computation, Elsevier, vol. 232(C), pages 898-907.
    17. Chiu, Singa Wang, 2008. "Production lot size problem with failure in repair and backlogging derived without derivatives," European Journal of Operational Research, Elsevier, vol. 188(2), pages 610-615, July.
    18. Teunter, Ruud & Dekker, Rommert, 2008. "An easy derivation of the order level optimality condition for inventory systems with backordering," International Journal of Production Economics, Elsevier, vol. 114(1), pages 201-204, July.
    19. Ronald, Robert & Yang, Gino K. & Chu, Peter, 2004. "Technical note: The EOQ and EPQ models with shortages derived without derivatives," International Journal of Production Economics, Elsevier, vol. 92(2), pages 197-200, November.
    20. Chung, Chun Jen & Wee, Hui Ming, 2007. "Optimizing the economic lot size of a three-stage supply chain with backordering derived without derivatives," European Journal of Operational Research, Elsevier, vol. 183(2), pages 933-943, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:155:y:2014:i:c:p:143-147. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nithya Sathishkumar). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.