Proceedings of the Korean Operations and Management Science Society Conference (한국경영과학회:학술대회논문집)
- 2003.05a
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- Pages.1028-1034
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- 2003
Analysis of EOQ Model Involving Estimate Errors
수요, 주문 및 재고비용이 불확실한 상황에서의 EOQ 모형분석
- Kim Gyutae (Department of Industrial Engineering, Chosun University) ;
- Hwang Hark-Chin (Department of Industrial Engineering, Chosun University) ;
- Kim Jong Rae (Department of Industrial Engineering, Chosun University)
- Published : 2003.05.01
Abstract
We consider the sensitivity of average inventory cost rate when true values of the parameters In the EOQ model are unknown over known ranges. In particular, In the case that the valid range on the true economic lot size are known. we provide a formula for estimating the lot size under minimax criterion. Moreover, to estimate the valid range, we apply the propagation of errors technique. Then, we present a scheme to find a (valid) lot size. based on the estimated range of the true lot size from the propagation or errors technique.
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