Article ID: | iaor19961528 |
Country: | United Kingdom |
Volume: | 46 |
Issue: | 10 |
Start Page Number: | 1250 |
End Page Number: | 1259 |
Publication Date: | Oct 1995 |
Journal: | Journal of the Operational Research Society |
Authors: | Hill Roger M. |
This paper considers a product subject to a period of increasing demand, according to a general power law, followed by a period of level demand. By assuming that the Economic Batch Quantity (EBQ) is used as soon as level demand is reached, the paper derives the optimal production/purchasing policy for use at any stage during the period of growth. The optimal approach is compared with that of the Silver-Meal heuristic.