Premium
The Cost of Ordering
Author(s) -
Biggs Joseph R.,
Thies Emil A.,
Sisak James R.
Publication year - 1990
Publication title -
journal of purchasing and materials management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 0094-8594
DOI - 10.1111/j.1745-493x.1990.tb00510.x
Subject(s) - purchasing , economic order quantity , liberian dollar , order (exchange) , value (mathematics) , operations research , business , operations management , computer science , economics , marketing , finance , mathematics , supply chain , machine learning
The utilization of traditional purchasing management methods and techniques should be reviewed on a timely basis to ensure that necessary changes are made as time and circumstances dictate. In this article, the authors report the results of a study to evaluate current uses of cost of ordering figures, the actual dollar values used for the cost of ordering, and how these values are determined. The results indicate that for most firms studied, there has been little, if any, change in the use and determination of the order cost value since the development of the classical EOQ model in 1913.