USING A CONSTANT RATE TO APPROXIMATE A LINEARLY CHANGING RATE FOR THE EOQ AND EPQ WITH PARTIAL BACKORDERING

摘要

In order to gain some insight into how well partial backordering models for the EOQ and EPQwith a constant backordering rate can approximate the performance of the comparable modelswith a backordering rate that increases linearly with the time until the backorder can be filled, weconducted an experiment that compared the costs of using the two models over a reasonable setof parameter combinations. Our basic conclusion is that the simpler model with a constantbackordering rate can perform virtually as well as the more complicated model as long as thecritical value for the backordering rate is positive.