Some comments on "A simple method to compute economic order quantities"
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.
Year of publication: |
2010
|
---|---|
Authors: | Leung, Kit-Nam Francis |
Published in: |
European Journal of Operational Research. - Elsevier, ISSN 0377-2217. - Vol. 201.2010, 3, p. 960-961
|
Publisher: |
Elsevier |
Keywords: | Inventory Production Complete backorders Without derivatives The complete squares method The global solution |
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