TY  - JOUR
AB  - The conventional Economic Order Quantity (EOQ) lot‐size model
ignores the effects of damage costs. While producing an EOQ lot, the
inventory may go “out of control”. An extension of the EOQ
production model based on damage costs is presented and the relevant
costs of damage and their effects on stockholding costs are discussed. A
new EOQ formula including damage costs is developed and a comparison
between the conventional concept and the new concept based on annual
total cost is made. The analysis shows that, if the costs of damage to
stock are taken into account, the computed EOQ is smaller, and the
conventional EOQ is not the optimum solution.
VL  - 10
IS  - 5
SN  - 0144-3577
DO  - 10.1108/01443579010006406
UR  - https://doi.org/10.1108/01443579010006406
AU  - Chyr Fuchiao
AU  - Ming Lin Tsong
AU  - Ho Chin‐Fu
PY  - 1990
Y1  - 1990/01/01
TI  - An Extension of the EOQ Production Model Based on Damage
Costs
T2  - International Journal of Operations & Production Management
PB  - MCB UP Ltd
SP  - 71
EP  - 76
Y2  - 2024/04/19
ER  -