Article ID: | iaor20115862 |
Volume: | 40 |
Issue: | 1 |
Start Page Number: | 131 |
End Page Number: | 133 |
Publication Date: | Jan 2012 |
Journal: | Omega |
Authors: | Dye Chung-Yuan, Hsieh Tsu-Pang |
Keywords: | demand, combinatorial optimization |
Pentico et al. (2011) recently proposed an EPQ model with partial backordering. They tried to determine the minimum average total cost per year from the three cases: to lose all sales, to meet all demand, and to allow stockouts with partial backordering. In this paper, we solve the same model without differential calculus and present a different decision procedure. Without the comparison of those costs, a numerical example is illustrated to determine the optimal production policy by our criteria.