Open AccessThe Robustness Of The Basic EOQ
Author(s) -
Louie Ren
Publication year - 2010
Publication title -
the international business and economic research journal/the international business and economics research journal
Language(s) - English
Resource type - Journals
eISSN - 2157-9393
pISSN - 1535-0754
DOI - 10.19030/iber.v9i12.344
Subject(s) - economic order quantity , robustness (evolution) , holding cost , mathematical optimization , mathematics , economics , econometrics , supply chain , business , chemistry , biochemistry , marketing , gene
The robustness of the basic Economic Ordering Quantity (EOQ) is studied for annual demand, set-up cost, and holding cost from various uniform and normal probability distributions. Instead of comparing TC*( ) and TC*(Q*) where is an estimate of Q*, the ( ) and TC*(Q*) are compared where ( ) is the total cost from realizations of annual demand, set-up cost, and holding cost. Simulation results show the robustness of the basic EOQ.