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Mathematical properties of EOQ models with special cost structure
Authors:Alessandro Gambini  Giovanni Mingari Scarpello  Daniele Ritelli
Affiliation:Dipartimento di Statistica, viale Filopanti, 5, 40126 Bologna, Italy
Abstract:An existence-uniqueness theorem is proved about a minimum cost order for a class of inventory models whose holding costs grow according to a stock level power law. The outcomes of Mingari Scarpello and Ritelli (2008) [1] are then extended to different environments: i.e., when the holding costs change during time generalizing a model available in Weiss (1982) [11], or with invariable holding costs but adopting a backordering strategy. Application cases are provided assuming several functional behaviors of demand versus the stock level.
Keywords:Economic order quantity   Optimal ordering   Non constant demand   Variable holding costs   Planned backorders
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