Abstract
The present study deals with the modification of Wilson’s formulation by taking into account changes in the supply chain represented by the parameters of the model, namely varying delivery costs and price of goods stored. The four different models are presented. The proposed models avoid the main drawbacks of Wilson’s formulation—the constant price and reordering time—and discuss the case where varying parameters are used alongside discounting. The proposed models render lower costs under particular settings.
Highlights
A New Model for Determining the economic order quantity (EOQ) underTetyana Nestorenko 1 , Mangirdas Morkunas 2 , Jana Peliova 3 , Artiom Volkov 4 , Tomas Balezentis 4, * and Dalia Streimkiene 4, *
Sustainable business decisions require taking into account a wide range of factors and methodologies [1,2,3,4]
They obtain traditional nonperishable Economic Order Quantity (EOQ)-like lower and upper bounds on the cycle length and the profit and show that they lead to near-optimal results for typical examples, like grocery items
Summary
Tetyana Nestorenko 1 , Mangirdas Morkunas 2 , Jana Peliova 3 , Artiom Volkov 4 , Tomas Balezentis 4, * and Dalia Streimkiene 4, *. Division of Farm and Enterprise Economics, Lithuanian Institute of Agrarian Economics, A. Vivulskio Str. Received: 29 July 2020; Accepted: 11 September 2020; Published: 14 September 2020
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