Abstract
This chapter discusses a generalized version of the economic order quantity (EOQ). In particular, we consider a situation in which a single inventory stage must select from among a set of demand streams, those which it will satisfy. Each demand stream carries with it a constant demand rate as well as a constant revenue rate. We consider several problem variants within this class, including problems with lot size and demand rate constraints.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Note that this result can be shown by contradiction and using an interchange argument. That is, we suppose we have an optimal solution in which the property does not hold, and demonstrate that either a solution exists with the same objective function value satisfying the property, or that the initial solution is not optimal, a contradiction.
References
Bazaraa M, Sherali H, Shetty C (2006) Nonlinear Programming: Theory and Algorithms, 3rd edn. John Wiley & Sons, Hoboken, NJ
Geunes J, Shen Z, Romeijn H (2004) Economic Ordering Decisions with Market Choice Flexibility. Naval Research Logistics 51(1):117–136
Shen Z, Coullard C, Daskin M (2003) A Joint Location-Inventory Model. Transportation Science 37(1):40–55
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2012 Joseph Geunes
About this chapter
Cite this chapter
Geunes, J. (2012). EOQ-Type Models with Demand Selection. In: Demand Flexibility in Supply Chain Planning. SpringerBriefs in Optimization. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-9347-2_3
Download citation
DOI: https://doi.org/10.1007/978-1-4419-9347-2_3
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4419-9346-5
Online ISBN: 978-1-4419-9347-2
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)