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On the Economic Order Quantity Model With Transportation Costs

Author

Listed:
  • Birbil, S.I.
  • Bulbul, K.
  • Frenk, J.B.G.
  • Mulder, H.M.

Abstract

We consider an economic order quantity type model with unit out-of-pocket holding costs, unit opportunity costs of holding, fixed ordering costs and general transportation costs. For these models, we analyze the associated optimization problem and derive an easy procedure for determining a bounded interval containing the optimal cycle length. Also for a special class of transportation functions, like the carload discount schedule, we specialize these results and give fast and easy algorithms to calculate the optimal lot size and the corresponding optimal order-up-to-level.

Suggested Citation

  • Birbil, S.I. & Bulbul, K. & Frenk, J.B.G. & Mulder, H.M., 2009. "On the Economic Order Quantity Model With Transportation Costs," Econometric Institute Research Papers EI 2009-22, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:16675
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    Cited by:

    1. Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A sustainable EOQ model: Theoretical formulation and applications," International Journal of Production Economics, Elsevier, vol. 149(C), pages 145-153.
    2. Andriolo, Alessandro & Battini, Daria & Grubbström, Robert W. & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A century of evolution from Harris׳s basic lot size model: Survey and research agenda," International Journal of Production Economics, Elsevier, vol. 155(C), pages 16-38.
    3. Andriolo, Alessandro & Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2015. "Haulage sharing approach to achieve sustainability in material purchasing: New method and numerical applications," International Journal of Production Economics, Elsevier, vol. 164(C), pages 308-318.

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