Title

A Note on the Optimal EOQ for Announced Price Increases in the Infinite Horizon

Publication Type

Journal Article

Publication Date

8-2005

Abstract

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.

Keywords

inventory, economic order quantity, special ordering for price increases

Discipline

Operations and Supply Chain Management

Research Areas

Operations Management

Publication

Operations Research

Volume

53

Issue

4

First Page

731

Last Page

732

ISSN

0030-364X

Identifier

10.1287/opre.1040.0186

Publisher

INFORMS

Additional URL

http://dx.doi.org/10.1287/opre.1040.0186