Technical note: The EOQ and EPQ models with shortages derived without derivatives

Grubbström and Erdem (Int. J. Prod. Econom. 59 (1999) 529) derived the EOQ model with shortages and complete backlogging without derivatives, and they predicted that their method could be introduced to younger students in school without the knowledge of calculus. However, their algebraic procedure i...

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Bibliographic Details
Published in:International journal of production economics 2004-11, Vol.92 (2), p.197-200
Main Authors: Ronald, Robert, Yang, Gino K., Chu, Peter
Format: Article
Language:English
Subjects:
Economic order/production quantity
Inventory
Shortage
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Summary:Grubbström and Erdem (Int. J. Prod. Econom. 59 (1999) 529) derived the EOQ model with shortages and complete backlogging without derivatives, and they predicted that their method could be introduced to younger students in school without the knowledge of calculus. However, their algebraic procedure is too sophisticated to be absorbed by ordinary readers. Recently, Cárdenas-Barrón (Int. J. Prod. Econom. 70 (2001) 289) extended the algebraic method to solve the EPQ model with shortages and complete backlogging. We will point out that his method has the same problem as Grubbström and Erdem's. In this note, our method applies basic algebraic skill to derive the optimal solution for EOQ and EPQ models with shortages and complete backlogging.
ISSN:0925-5273
1873-7579
DOI:10.1016/j.ijpe.2003.10.013