A Proof of the EOQ Formula Using Quasi-Variational Inequalities

International Journal of Systems Science, Vol. 29, No. 11, pp. 1295-1299, 1998

11 Pages Posted: 18 Apr 2008 Last revised: 27 Mar 2014

See all articles by Dirk Beyer

Dirk Beyer

M-Factor, Inc.

Suresh Sethi

University of Texas at Dallas - Naveen Jindal School of Management

Abstract

In this paper, we use quasi-variational inequalities to provide rigorous proof of the familiar square root formula for the economic order quantity (EOQ) in the classical deterministic average cost inventory model.

Keywords: EOQ, Square root formula, quasi-variational inequalities, inventory model, lotsize model, lotsize formula

JEL Classification: M11, C61

Suggested Citation

Beyer, Dirk and Sethi, Suresh, A Proof of the EOQ Formula Using Quasi-Variational Inequalities. International Journal of Systems Science, Vol. 29, No. 11, pp. 1295-1299, 1998, Available at SSRN: https://ssrn.com/abstract=1121525

Dirk Beyer

M-Factor, Inc. ( email )

1400 Fashion Island Boulevard
Suite 602
San Mateo, CA 94404-2060
United States

Suresh Sethi (Contact Author)

University of Texas at Dallas - Naveen Jindal School of Management ( email )

800 W. Campbell Road, SM30
Richardson, TX 75080-3021
United States

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