Alternative approach on meeting product demand by an imperfect EPQ-based model and an external source

摘要

Meeting product demand by an imperfect economic production quantity (EPQ) model and an additional external source was explored by Chiu et al. [1], using differential calculus approach. This study employs a simplified algebraic method to reexamine such a hybrid EPQ-based replenishment system. As a result, we show that the optimal batch size can be derived without needs to reference to differential calculus. This straightforward method may assist practitioners or the first year college students, who may be with insufficient knowledge of calculus in understanding the real-life hybrid EPQ-based replenishment system more effectively.