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A Note on Determining Order Quantities with a Linear Trend in Demand

Amitava Mitra, James F. Cox and Richard R. Jesse Jr
The Journal of the Operational Research Society
Vol. 35, No. 2 (Feb., 1984), pp. 141-144
DOI: 10.2307/2581442
Stable URL: http://www.jstor.org/stable/2581442
Page Count: 4
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A Note on Determining Order Quantities with a Linear Trend in Demand
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Abstract

The economic order quantity concept has received much attention. However, the model is severely restricted by the assumption of constant demand. This paper presents a procedure for adjusting the economic order quantity model for the cases of increasing or decreasing linear trend demand patterns. The primary advantage of the proposed method is its simplicity in comparison with existing procedures and, as illustrated in two examples, its near-optimal performance

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