<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The economic order quantity (EOQ) model is a pure economic model in classical inventory control theory. The model is designed to find the order quantity so as to minimize total cost under a deterministic setting. In this study, we revise the standard EOQ model to incorporate sustainability considerations that include environmental and social criteria in addition to the conventional economic considerations. We propose models for a number of different policies and analyze these revised models. Based on our analysis, we show how the triple bottom line considerations of sustainability be appended to traditional cost accounting in EOQ model. We also provide a number of useful insights for decision and policy making practices.</p></abstract>

The economic order quantity (EOQ) model is a pure economic model in classical inventory control theory. The model is designed to find the order quantity so as to minimize total cost under a deterministic setting. In this study, we revise the standard EOQ model to incorporate sustainability considerations that include environmental and social criteria in addition to the conventional economic considerations. We propose models for a number of different policies and analyze these revised models. Based on our analysis, we show how the triple bottom line considerations of sustainability be appended to traditional cost accounting in EOQ model. We also provide a number of useful insights for decision and policy making practices.

EOQ Revisited with Sustainability Considerations

Department of Industrial Engineering, Koc University, Rumelifeneri Yolu, 34450 Sariyer, Istanbul, Turkey. The first version of this paper was available to public on Dec. 2, 2010

Foundations of Computing and Decision Sciences

{"article-title":"EOQ Revisited with Sustainability Considerations"}

The economic order quantity (EOQ) model is a pure economic model in classical inventory control theory. The model is designed to find the order quantity so as...

EOQ Revisited with Sustainability Considerations

Data publikacji: 04 gru 2013

Zakres stron: 223 - 249

DOI: https://doi.org/10.2478/fcds-2013-0011

This content is open access.