A Note on the Optimal EOQ for Announced Price Increases in the Infinite Horizon

• Main Authors: LIM, Andrew, RODRIGUES, Brian
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2005
• Subjects: inventory; economic order quantity; special ordering for price increases; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/2622; https://doi.org/10.1287/opre.1040.0186
• Institution: Singapore Management University

Huang et al. (2003) used the Cesaro limit of a savings function to determine the optimal special order in an EOQ model with single announced price increases over an infinite horizon. In this note, we point out that the savings function is not Cesaro summable. More importantly, no limiting argument f...