On the Optimality of the Multi-Product EOQ Model with Pricing Consideration

Two previous studies that attempted to generalize the deterministic joint pricing-inventory decision model are re-evaluated. We prove analytically that even in a single-product environment, the EOQ model with constant price-elastic demand cannot find optimal solutions unless two optimality condition...

Full description

Saved in:
Bibliographic Details
Published inManagement science & financial engineering Vol. 18; no. 1; pp. 21 - 26
Main Authors Shin, Ho-Jung, Park, Soo-Hoon
Format Journal Article
LanguageEnglish
Published Seoul 한국경영과학회 01.05.2012
KORMS
Subjects
경영학
Inventory Model
Pricing
Online AccessGet full text
ISSN2287-2043
2287-2361
DOI10.7737/MSFE.2012.18.1.021

Cover

More Information
Summary:Two previous studies that attempted to generalize the deterministic joint pricing-inventory decision model are re-evaluated. We prove analytically that even in a single-product environment, the EOQ model with constant price-elastic demand cannot find optimal solutions unless two optimality conditions associated with price elasticity and demand magnitude are satisfied. Due to the inexistence of the general optimality for the problem, demand function and price elasticity must be evaluated and bounded properly to use the methods proposed in the previous studies. KCI Citation Count: 1
Bibliography:SourceType-Scholarly Journals-1
ObjectType-General Information-1
content type line 14
G704-000073.2012.18.1.005
ISSN:2287-2043
2287-2361
DOI:10.7737/MSFE.2012.18.1.021