A Note on the Optimal EOQ for Announced Price Increases in the Infinite Horizon
Huang et al. (2003) used the Cesaro limit of a savings function to determine the optimal special order in an EOQ model with single announced price increases over an infinite horizon. In this note, we point out that the savings function is not Cesaro summable. More importantly, no limiting argument for the cost function d(t,Qs) as t approaches infinity is necessary at all given that this function is periodic for which it suffices to optimize the integral of the function over any given period.
inventory, economic order quantity, special ordering for price increases
Operations and Supply Chain Management
LIM, Andrew and RODRIGUES, Brian.
A Note on the Optimal EOQ for Announced Price Increases in the Infinite Horizon. (2005). Operations Research. 53, (4), 731-732. Research Collection Lee Kong Chian School Of Business.
Available at: http://ink.library.smu.edu.sg/lkcsb_research/2622