Article ID: | iaor19981081 |
Country: | Netherlands |
Volume: | 80 |
Issue: | 2 |
Start Page Number: | 328 |
End Page Number: | 343 |
Publication Date: | Jan 1995 |
Journal: | European Journal of Operational Research |
Authors: | Barman Samir, Tersine Richard J. |
Keywords: | economic order |
The familiar model for determining the optimal stock replenishment strategy for a temporary price reduction is based on the simple EOQ. This paper extends the logic to a composite EOQ model which can be decomposed into a family of hybrid models with broader operational flexibility. The composite EOQ provides malleability and flexibility to changing operational requirements by disaggregating complexity. It approaches the resourcefulness of an expert system with its attendant economies.