each quarter of 2009 = [square root of (2*(quarterly demand)*($25)]/($2.
A simple modification of the EOQ
for the case of a varying demand rate.
The point here is that since the manufacturing segment's total cost is dependent upon the distribution segment's order size and the distribution segment's EOQ
depends on the transfer price set by the manufacturing segment, alternate forms of the transfer price, [C.
Dave, On the EOQ
models with two levels of storage, Opsearch 25 (1988), 190-196.
1998, An EOQ
model for items Weibull distribution deterioration shortages and trended demandD an extension of Philip's model.
Samanta, An EOQ
model for deteriorating items with stock--dependent time varying demand, Tamsui Oxford Journal of Management Sciences 20 (2004), 37-46.
A 1998 study by the Air Force Logistics Management Agency (AFLMA) showed that, in some special cases, retail support for consumable parts could be improved by ordering more frequently from DLA than the EOQ
approach would dictate.
Students need to be exposed to both the quantitative aspects of inventory management, such as JIT, ERP, and EOQ
, but the qualitative aspects can be more difficult to understand.
Using standard EOQ
assumptions, earlier works (Naddor, 1966; Brown, 1967; Tersine & Grasso, 1978; Taylor & Bradley, 1985; Lev & Weiss, 1990) developed prescriptive models for determining an optimal special order quantity for a retailer in a variety of OTOS situations.
model for deteriorating items with time varying demand and partial backlogging.
Until a few years ago, the EOQ
model was used to calculate stock levels and place orders, while the forecasts used to calculate the levels and reorder point were based solely on historical demands.
Vogtle is also a certified EOQ
(European Organization of Quality) quality auditor.