Simply optimal - beyond EOQ for a popular class of inventory problems
Date
1999
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
SAIIE
Abstract
ENGLISH ABSTRACT: True optimal solution s to real life problems are normally only achievable at the expense of great
complexity. Every now and then however, one is almost stunned by the simplicity of a good
solution to a practical problem. This paper discusses a relatively simple method for determining the
joint optimum order quantity and reorder point for the case where service level is specified as a
desired fraction of demand to be satisfied directly from stock. Separate solutions were derived for
complete backorders and lost sales, and the method is equally applicable to fixed order quantity and
periodic review inventory problems . Demand during the lead time is assumed to be normally
distributed. The intent of the paper is to focus on the findings and the application of the method,
rather than the mathematical derivation of the formulae itself.
AFRIKAANSE OPSOMMING: Geen opsomming beskikbaar
AFRIKAANSE OPSOMMING: Geen opsomming beskikbaar
Description
CITATION: Van Wijck, W. 1999. Simply optimal - beyond EOQ for a popular class of inventory problems. South African Journal of Industrial Engineering, 10(1): 73-85, doi: http://dx.doi.org/10.7166/10-1-374.
The original publication is available at http://sajie.journals.ac.za
The original publication is available at http://sajie.journals.ac.za
Keywords
Cost accounting, Safety stock (Inventory control), Inventory management
Citation
Van Wijck, W. 1999. Simply optimal - beyond EOQ for a popular class of inventory problems. South African Journal of Industrial Engineering, 10(1): 73-85, doi: http://dx.doi.org/10.7166/10-1-374