Birbil, Ş. İlker and Bülbül, Kerem and Frenk, Hans and Mulder, H. M. (2014) On EOQ cost models with arbitrary purchase and transportation costs. (Accepted/In Press)
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Abstract
We analyze an economic order quantity cost model with unit out-of-pocket holding costs, unit opportunity costs of holding, fixed ordering costs, and general purchase-transportation costs. We identify the set of purchase-transportation cost functions for which this model is easy to solve and related to solving a one-dimensional convex minimization problem. For the remaining purchase-transportation cost functions, when this problem becomes a global optimization problem, we propose a Lipschitz optimization procedure. In particular, we give an easy procedure which determines an upper bound on the optimal cycle length. Then, using this bound, we apply a well-known technique from global optimization. Also for the class of transportation functions related to full truckload (FTL) and less-than-truckload (LTL) shipments and the well-known 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.
Item Type: | Article |
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Uncontrolled Keywords: | Inventory; EOQ cost model; transportation cost function; purchasing cost function |
Subjects: | T Technology > T Technology (General) > T055.4-60.8 Industrial engineering. Management engineering T Technology > T Technology (General) > T055.4-60.8 Industrial engineering. Management engineering > T57.6-57.97 Operations research. Systems analysis |
Divisions: | Faculty of Engineering and Natural Sciences Faculty of Engineering and Natural Sciences > Academic programs > Manufacturing Systems Eng. |
Depositing User: | Kerem Bülbül |
Date Deposited: | 15 Oct 2014 15:00 |
Last Modified: | 26 Apr 2022 09:14 |
URI: | https://research.sabanciuniv.edu/id/eprint/24436 |
Available Versions of this Item
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On the economic order quantity model with transportation costs. (deposited 30 Nov 2009 20:49)
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A general framework for economic order quantity models with discounts and transportation costs. (deposited 27 Sep 2012 23:24)
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On EOQ cost models with arbitrary purchase and transportation costs. (deposited 15 Jan 2014 20:48)
- On EOQ cost models with arbitrary purchase and transportation costs. (deposited 15 Oct 2014 15:00) [Currently Displayed]
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On EOQ cost models with arbitrary purchase and transportation costs. (deposited 15 Jan 2014 20:48)
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A general framework for economic order quantity models with discounts and transportation costs. (deposited 27 Sep 2012 23:24)