| Article ID: | iaor199029 |
| Country: | United States |
| Volume: | 27 |
| Start Page Number: | 12 |
| End Page Number: | 18 |
| Publication Date: | Mar 1986 |
| Journal: | Production and Inventory Management Journal |
| Authors: | Ritchie Eric, Tsado Aaron |
The EOQ is often used when demand is increasing, and work reported in the literature has suggested that this can give rise to significant cost penalties. The size of the cost penalty for real-life problems is shown to be much smaller than previously reported.