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Existence of EOQ and its Evaluation: Some Cases of Stock Blow Down Dynamics Depending on its Level

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Handbook of EOQ Inventory Problems

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 197))

Abstract

The EOQ mathematical models usually deal with the problem of a wholesaler who has to manage a goods restocking policy, settling his best amount of goods to be procured. Best means capable of minimizing all the costs concerning the trade of the stored goods. The relevant seminal contributions are due to Harris, and Wilson, who analyzed an easy scenario with a certain demand uniform all over the time so that its instantaneous change rate is fixed, with stocking charges not dependent on time. In such a field, our own contribution consists of establishing sufficient conditions on the well posedness to the minimum cost problem and relationships providing either closed form solutions or, alternatively, quadrature formulae—without ex ante approximations. All this allows a numerical solution to the transcendental (or algebraical of high degree) equation solving to the most economical batch. In short, such our paper is concerning the special family of EOQ mathematical models with different deterministic time-dependent demands.

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Acknowledgments

We wish to thank the anonymous Referees and the Editor for their fruitful suggestions which improved our article.

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Authors and Affiliations

  1. Dipartimento di Scienze Statistiche, via Belle Arti 41, 40126, Bologna, Italy

    Alessandro Gambini & Daniele Ritelli

  2. Via Negroli 6, 20136, Milan, Italy

    Giovanni Mingari Scarpello

Authors
  1. Alessandro Gambini
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  2. Giovanni Mingari Scarpello
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  3. Daniele Ritelli
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Corresponding author

Correspondence to Daniele Ritelli .

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Editors and Affiliations

  1. Institute of Textiles and Clothing, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong SAR

    Tsan-Ming Choi

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Gambini, A., Scarpello, G.M., Ritelli, D. (2014). Existence of EOQ and its Evaluation: Some Cases of Stock Blow Down Dynamics Depending on its Level. In: Choi, TM. (eds) Handbook of EOQ Inventory Problems. International Series in Operations Research & Management Science, vol 197. Springer, Boston, MA. https://doi.org/10.1007/978-1-4614-7639-9_4

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