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A Post Modern Look At The EOQ Model: Deconstruction Of The Total Cost Function Leads To JIT
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A Post Modern Look At The EOQ Model: Deconstruction Of The Total Cost Function Leads To JIT
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Description
Rating
Title
A
Post
Modern
Look
At The
EOQ
Model
:
Deconstruction
Of The
Total
Cost
Function
Leads
To
JIT
Author(s)
Roach
,
Bill
Description
When
the
hold
cost
H
is
much
larger
than
anticipated
by the
usual
textbook
treatment
of the
EOQ
formula
,
order
of
magnitude
larger
, the
EOQ
total
cost
function
is
pointed
rather
than
flat
. This
pointedness
logically
causes
the
EOQ
model
to
yield
JITlike
results
. The
flatness
or
pointedness
of the
EOQ
total
cost
curve
depends
on
holding
cost
alone
and not
annual
demand
or
batch
cost
. This
paper
uses
the
mathematics
of
conic
sections
to
develop
measures
of the
pointedness
of the
EOQ
total
cost
function
.
Subject
Eccentricity
;
Economic
Order
Quantity
;
Economic
Order
Quantity
Model
;
EOQ
;
Flatness
;
Inventory
Control
;
Pointedness
;
Conic
Sections
Publisher
Washburn University, School of Business
Date
November
2007
Type
Working paper
Format
PDF
Series/Report No.
School
of
Business
Working
Paper
Series
;
No
.
93
Language
Eng
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