An EOQ Model with Substitutions between Products
研究两种产品间存在替代时的最优订货批量，发现完全替代从不最优，只有部分替代或不替代可能最优，并给出计算最优订货量的算法。
AbstractIn this paper, we present an economic order quantity (EOQ) model when two products are required, and one can be substituted for the other, if necessary, at a given unit cost. We consider three cases: (i) when there is no substitution between the products, (ii) when there is full substitution between the products, and (iii) when there is partial substitution between the products. In a deterministic setting with proportional substitution costs, we would expect to find full substitution or no substitution being optimal, depending on the cost parameters. However, we observe that full substitution is never optimal; only partial substitution or no substitution may be optimal. This result can best be explained due to the non-linearity of the decision variables in the total cost expression. Finally, we present an algorithm to compute the optimal order quantities.Keywords: economic order quantityinventorysubstitutions Part of this research was done while the first author was on sabbatical leave at the Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong.Part of this research was done while the first author was on sabbatical leave at the Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong.