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For the basic EOQ model, we assumed that all costs are known. However, we may make errors in forecast. Suppose that we approximate an actual
For the basic EOQ model, we assumed that all costs are known. However, we may make errors in forecast. Suppose that we approximate an actual cost of RC by RC (1 E1), and a holding cost of HC by HC (1 E2) then we can simplify the increase of variable cost as following
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Microeconomics Theory and Applications
Authors: Edgar K. Browning, Mark A. Zupan
12th edition
9781118920060, 1118758870, 1118920066, 978-1118758878
