Article ID: | iaor199967 |
Country: | Netherlands |
Volume: | 92 |
Issue: | 2 |
Start Page Number: | 266 |
End Page Number: | 280 |
Publication Date: | Jul 1996 |
Journal: | European Journal of Operational Research |
Authors: | Tersine Richard J. |
The usual model for determining the optimal replenishment lot size for an announced price increase is the basic economic order quantity (EOQ) model. This analysis extends the logic to a composite lot sizing model that can be disaggregated into a family of hybrid models with additional operational flexibility. The composite model permits broader diversity and the ability to decompose complexity. It provides decision support resourcefulness with its resultant economies.