Title: A note on how to compute economic order quantities without derivatives by cost comparisons: some comments

Authors: Leopoldo Eduardo Cardenas-Barron

Addresses: Department of Industrial and Systems Engineering, School of Engineering, Department of Management, School of Business, Instituto Tecnologico y de Estudios Superiores de Monterrey, ITESM, Campus Monterrey, Mexico, E. Garza Sada 2501 Sur, C.P. 64 849, Monterrey, N.L., Mexico, USA

Abstract: This paper discusses some points of the algebraic optimisation method and the cost comparisons optimisation method. Moreover, mathematical expressions are derived for the backorders level for the EOQ and EPQ inventory models with planned backorders that were not provided by the cost comparisons method using the well known marginal cost analysis and simple geometric relations.

Keywords: economic order quantities; EOQ inventory model; economic production quantities; inventories; backorders; cost comparisons; algebraic optimisation; costing; marginal cost analysis; geometric relations; applied management science.

DOI: 10.1504/IJAMS.2010.031086

International Journal of Applied Management Science, 2010 Vol.2 No.2, pp.198 - 204

Published online: 20 Jan 2010 *

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