Article ID: | iaor1996448 |
Country: | Netherlands |
Volume: | 59 |
Issue: | 3 |
Start Page Number: | 434 |
End Page Number: | 443 |
Publication Date: | Jun 1992 |
Journal: | European Journal of Operational Research |
Authors: | Chao Hung-po |
Keywords: | economic order |
The paper generalizes Bather’s EOQ model with stochastic demand to the case with discounting. It considers two cases: one with and one without demand backlogging. Important implications of discounting are investigated. Useful insights and formulas are provided.