EOQ holds under stochastic demand, a technical note

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dc.contributor.authorMaddah, Bacel S.
dc.contributor.authorNoueihed, Nazim A.
dc.contributor.departmentDepartment of Industrial Engineering and Management
dc.contributor.facultyMaroun Semaan Faculty of Engineering and Architecture (MSFEA)
dc.contributor.institutionAmerican University of Beirut
dc.date.accessioned2025-01-24T11:31:45Z
dc.date.available2025-01-24T11:31:45Z
dc.date.issued2017
dc.description.abstractWe consider a variant of the economic order quantity (EOQ) model. Mainly, we assume that demand occurs at random, one unit at a time, and is characterized by independent and identically distributed times between two demand epochs. We also assume that the ordering policy is characterized by ordering the same amount whenever the inventory level drops to zero, and a demand occurs. Surprisingly, we show that the optimal order quantity that minimizes the expected inventory cost follows the familiar EOQ formula. © 2016 Elsevier Inc.
dc.identifier.doihttps://doi.org/10.1016/j.apm.2016.12.026
dc.identifier.eid2-s2.0-85016416973
dc.identifier.urihttp://hdl.handle.net/10938/27566
dc.language.isoen
dc.publisherElsevier Inc.
dc.relation.ispartofApplied Mathematical Modelling
dc.sourceScopus
dc.subjectEoq
dc.subjectInventory management
dc.subjectStochastic demand
dc.subjectInventory control
dc.subjectEconomic order quantity models
dc.subjectInventory costs
dc.subjectInventory levels
dc.subjectOptimal order quantity
dc.subjectOrder policies
dc.subjectTechnical notes
dc.subjectStochastic systems
dc.titleEOQ holds under stochastic demand, a technical note
dc.typeArticle

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