Economic Order Quantity When Ordering Costs are Lot Size Dependent

01/05/1987

Economic Order Quantity When Ordering Costs are Lot Size Dependent

Gupta Omprakash K

Working Papers

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Classical EOQ model assumes that the ordering cost A is constant and independent of lot size. This paper deals with the case when A depends on the lot size and increases at a decreasing rate. Firstly A is assumed to increase in steps as a function of lot size . In both cases models are analyzed and procedures are given for determining the optimal lot size.

IIMA