Inventory Cost Definition In An EOQ Model Application

Willem Selen; Wallace R Wood

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Inventory Cost Definition In An EOQ Model Application

Journal article

Open access

Peer reviewed

Inventory Cost Definition In An EOQ Model Application

Willem Selen and Wallace R Wood

Production and Inventory Management Journal, Vol.28(4), pp.44-47

1987

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Abstract

While EOQ-type inventory models are 'robust' to cost and demand estimation errors, cost definition errors can be severe and have significant impact on decisions. Cost figures for such models must be carefully defined in order to avoid common accounting pitfalls. An example problem illustrating a common pitfall using average, rather than marginal, cost is presented.

Details

Title: Inventory Cost Definition In An EOQ Model Application
Authors: Willem Selen (Author) - Tilburg University, Netherlands
Wallace R Wood (Author) - University of Cincinnati, United States
Publication details: Production and Inventory Management Journal, Vol.28(4), pp.44-47
Publisher: A P I C S
Date published: 1987
ISSN: 0897-8336
Organisation Unit: University of the Sunshine Coast, Queensland
Language: English
Record Identifier: 99448633802621
Output Type: Journal article

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