Economic Order Quantity When Ordering Costs are Lot Size Dependent
Research & Publications
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
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.