Optimal decision rules are presented for determining both the best stock‐up level and the best time to receive an order in a fixed order‐interval inventory system under certainty. In developing such rules, an important, but heretofore neglected, factor is taken explicitly into account,...

This paper examines the sensitivity of the Economic Order Quantity (EOQ) inventory model to lot size errors when the purchase cost per unit, C, and the replenishment cost per order, A, are both dependent on the amount ordered, Q. A formula for the percentage increase in average annual variable...