What is it about?
This is the first study including capital cost in EOQ model. Capital cost is an important factor that can change the optimal order quantity.
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Why is it important?
It is important to consider less investigated cost in this model to find the right economic order quantity if we choose to use this system.
Perspectives
Although EOQ model is an old inventory model, it is still being used in many organisations. As it is being used, improvement on the model to find the order sizes that lead to the minimum total cost matters.
Mr. Meh Raja
University of New South Wales
Read the Original
This page is a summary of: A Revision on Cost Elements of the EOQ Model, Studies in Business and Economics, January 2016, De Gruyter,
DOI: 10.1515/sbe-2016-0001.
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