Questions tagged [economic-order-quantity]

For questions related to the economic order quantity (EOQ) problem, which seeks the optimal order quantity for an inventory system with constant, deterministic demand; fixed costs for placing orders; and holding costs.

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Which EOQ-based $(r,Q)$ approximation has a fixed worst-case error bound?

There are two common approximations for the $(r,Q)$ inventory optimization problem that use the EOQ model. It is well known that one of them has a fixed worst-case error bound, but there is confusion ...
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4answers
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Units in the EOQ problem

This is a very basic question about a very basic model, but I can't come up with a satisfactory answer. In the economic order quantity (EOQ) model, let $\lambda$ be the demand rate (items/year), $h$ ...