| Article ID: | iaor20011161 |
| Country: | United States |
| Volume: | 29 |
| Issue: | 11 |
| Start Page Number: | 1295 |
| End Page Number: | 1299 |
| Publication Date: | Nov 1998 |
| Journal: | International Journal of Systems Science |
| Authors: | Sethi Suresh P., Beyer D. |
A rigorous proof of the classical EOQ formula is provided using the method of quasi-variational inequalities (QVI). The meaning of the so-called potential function that arises in the course of our analysis is interpreted and that the QVI methodology can be used to address continuous-time stochastic inventory models with fixed ordering cost is noted.