Some comments on "A simple method to compute economic order quantities"
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 960-961 |
| Journal / Publication | European Journal of Operational Research |
| Volume | 201 |
| Issue number | 3 |
| Publication status | Published - 16 Mar 2010 |
Link(s)
Abstract
In this note, we emphasize that the arithmetic-geometric-mean-inequality approach proposed by Teng [Teng, J.T., 2008. A simple method to compute economic order quantities. European Journal of Operational Research. doi:10.1016/j.ejor.2008.05.019] is not a general solution method. Teng's approach happens to work and give the correct results when the two terms in an objective function are any functions such that their product is a constant. The classical EOQ model works fine since the product of the two terms is indeed a constant! When the product is not a constant, Teng's approach is of little use. This is exemplified in Comment 1 via solving the EOQ model with complete backorders (where the model is regarded as having two decision variables). Comment 2 is generally valid for an algebraic method when it is used to solve an objective function with two decision variables. © 2009 Elsevier B.V. All rights reserved.
Research Area(s)
- Complete backorders, Inventory, Production, The complete squares method, The global solution, Without derivatives
Citation Format(s)
Some comments on "A simple method to compute economic order quantities". / Leung, Kit-Nam Francis.
In: European Journal of Operational Research, Vol. 201, No. 3, 16.03.2010, p. 960-961.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
