A general framework for economic order quantity models with discounts and transportation costs

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Abstract

We propose a general framework for economic order quantity type models with unit out-of-pocket holding costs, unit opportunity costs of holding, fixed ordering costs, and general transportation costs. For these models, we analyze the associated optimization problem and derive an easy procedure for determining a bounded interval containing the optimal cycle length. Also for a special class of transportation functions, like the carload discount schedule, we specialize these results and give fast and easy algorithms to calculate the optimal lot size and the corresponding optimal order-up-to-level.

Available Versions of this Item

• On the economic order quantity model with transportation costs. (deposited 30 Nov 2009 20:49)
  • A general framework for economic order quantity models with discounts and transportation costs. (deposited 27 Sep 2012 23:24) [Currently Displayed]