The deterministic EOQ with partial backordering: A new approach

Abstract

Previous authors have shown that if demand that cannot be filled from stock is partially backordered, then using the full-backordering model or assuming that all stockouts will result in lost sales can lead to substantial increases in cost relative to using a model that specifically recognizes the percentage of the stockouts that will be backordered. The models that these authors developed resulted in procedures or equations that are relatively difficult to use. In this paper we take a different approach to modeling the deterministic EOQ with partial backordering that results in equations that are more like the comparable equations for the basic EOQ and its full-backordering extension.