Abstract
The EOQ formula (Harris, Fact Mag Manage 10(2):135-6-152, 1913) provides a balance between setup costs and holding costs in the system. This formula has been widely developed in the literature. However in the industrial reality, it is often difficult to know the exact value of these setup and holding costs. In this paper, we develop a formula to estimate lot size from the values known in the company. It is verified that the behavior of these formulas meets expectations.
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
References
Bomberger EE (1966) A dynamic programming approach to a lot size scheduling problem. Manage Sci 12(11):778
Brander P, Segerstedt A (2009) Economic lot scheduling problems incorporating a cost of using the production facility. Int J Prod Res 47(13):3611–3624
Goyal SK (1985) Economic order quantity under conditions of permissible delay in payments. J Oper Res Soc 44:785–795
Harris FW (1913) How many parts to make an once. Fact Mag Manage 10(2):135-6-152
Huang YF (2007) Economic order quantity under conditionally permissible delay in payments. Eur J Oper Res 176(2):911–924
Jaggi CK, Goyal SK, Goel SK (2008) Retailer’s optimal replenishment decisions with credit-linked demand under permissible delay in payments. Eur J Oper Res 190(1):130–135
Lee WJ (1993) Determining order quantity and selling price by geometric programming: optimal solution, bounds, and sensitivity. Decision Sci 24(1):76–87
Meyer B (2004) Value-adding logistics for a world assembly line. Bonifatius Verlag, Paderborn
Mo J, Mi F, Zhou F, Pan H (2009) A note on an EOQ model with stock and price sensitive demand. Math Comput Model 49(9):2029–2036
Sadjadi SJ, Oroujee M, Aryanezhad MB (2005) Optimal production and marketing planning. Comput Optim Appl 30(2):195–203
Shirodkar S, Kempf K (2006) Supply chain collaboration through shared capacity models. Interfaces 36(5):420–432
Taleizadeh AA, Pentico DW, Saeed Jabalameli M, Aryanezhad M (2013) An EOQ model with partial delayed payment and partial backordering. Omega 41(2):354–368
Vidal-Carreras PI, Garcia-Sabater JP, Coronado-Hernandez JR (2012) Economic lot scheduling with deliberated and controlled coproduction. Eur J Oper Res 219(2):396–404
Whitin TM (1955) Inventory control and price theory. Manage Sci 2(1):61–68
You PS, Chen TC (2007) Dynamic pricing of seasonal goods with spot and forward purchase demands. Comput Math Appl 54(4):490–498
Acknowledgments
The work described in this paper has been supported by Project “CORSARI MAGIC DPI2010-18243” from the Spanish Ministry of Science and Innovation.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer International Publishing Switzerland
About this paper
Cite this paper
Vidal-Carreras, P., Garcia-Sabater, J., Valero-Herrero, M., Santandreu-Mascarell, C. (2014). Estimating Costs in the EOQ Formula. In: Hernández, C., López-Paredes, A., Pérez-Ríos, J. (eds) Managing Complexity. Lecture Notes in Management and Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-04705-8_20
Download citation
DOI: https://doi.org/10.1007/978-3-319-04705-8_20
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-04704-1
Online ISBN: 978-3-319-04705-8
eBook Packages: EngineeringEngineering (R0)