A thermodynamic approach to modelling the economic order quantity

Applied Mathematical Modelling

Volumn 30, Issue 9, 2006, Pages 867-883

  Jaber, M Y ^a   Nuwayhid, R Y ^b   Rosen, M A ^c  

^a RYERSON UNIVERSITY   (Canada)

^b AMERICAN UNIVERSITY OF BEIRUT   (Lebanon)

^c UNIVERSITY OF ONTARIO INSTITUTE OF TECHNOLOGY   (Canada)

Author keywords

Constant commodity flow; Economic order quantity; Entropy cost; Price dependent demand; Supply chain coordination; Thermodynamics

Indexed keywords

COSTS; ENTROPY; ESTIMATION; INVENTORY CONTROL; MATHEMATICAL MODELS; THERMODYNAMICS;

CONSTANT COMMODITY FLOW; ECONOMIC ORDER QUANTITY; ENTROPY COST; PRICE DEPENDENT METHOD; SUPPLY CHAIN COORDINATION;

ECONOMICS;

COSTS; ECONOMICS; ENTROPY; ESTIMATION; INVENTORY CONTROL; MATHEMATICAL MODELS; THERMODYNAMICS;

EID: 33745133731     PISSN: 0307904X     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.apm.2005.07.001     Document Type: Article

References (34)

1. Bejan A., Tsatsaronis G., and Moran M. Thermal Design and Optimisation (1996), Wiley & Sons
2. E. Sciubba, From engineering economics to extended exergy accounting: the path from monetary cost to resource-base value, in: ECOS2001: Proceedings of the First International Conference on Applied Thermodynamics, 2001, pp. 21-37.
3. Rosen M.A. Exergy and economics: Is exergy profitable?. Exergy: An Int. J. 2 4 (2002) 218-220
4. Rosen M.A., and Dincer I. Exergy-cost-energy-mass analysis of thermal systems and processes. Energy Convers. Manage. 44 10 (2003) 1633-1651
5. Drechsler F.S. Decision trees and the second law. Oper. Res. Quart. 19 4 (1968) 409-419
6. Tyler G.W. A thermodynamic model of manpower systems. J. Oper. Res. Soc. 40 2 (1989) 137-139
7. Harris F.W. Operations and Cost-Factory Management Series (1915), A.W. Shaw Co., Chicago
8. Osteryoung J.S., Nosari E., McCarty D.E., and Reinhart W.J. Use of the EOQ model for inventory analysis. Prod. Inventory Manage. J. 27 3 (1986) 39-46
9. Adkins Jr. A.C. EOQ in the real world. Prod. Inventory Manage. J. 25 4 (1984) 50-54
10. Brown R.M., Conine Jr. T.E., and Tamarkin M. A note on holding costs and lot-size errors. Decis. Sci. 17 4 (1986) 603-608
11. Selen W.J., and Wood W.R. Inventory cost definition in an EOQ model application. Prod. Inventory Manage. J. 28 4 (1987) 44-47
12. Woolsey G. A requiem for the EOQ: an editorial. Hospital Mater. Manage. Quart. 12 1 (1990) 82-90
13. Jones D.J. JIT and the EOQ model: odd couple no more!. Manage. Accounting 72 8 (1991) 54-57
14. Conner J.R. Inventory obsolescence: a hidden cost. CPA J. 56 Oct. (1986) 111
15. Lambert D.M., Bennion Jr. M.L., and Taylor J.C. Solving the small order problem. Int. J. Phys. Distribution Mater. Manage. 17 2 (1987) 7-19
16. Wiersema W., and LeFevre R. Uncovering the hidden costs of manufacturing. Corporate Controller 5 2 (1992) 46-50
17. Gooley T.B. Finding the hidden cost of logistics. Traffic Manage. 34 3 (1995) 47-50
18. Palmer C. Bringing design and procurement together. Mech. Eng. 118 4 (1996) 77-79
19. Pearse R.W. Uncovering hidden costs. Independent Energy 27 5 (1997) 16-18
20. Giakatis G., Enkawa T., and Washitani K. Hidden quality costs and the distinction between quality cost and quality loss. Total Quality Manage. 12 2 (2001) 179-190
21. Jaber M.Y., Nuwayhid R.Y., and Rosen M.A. Price-driven economic order systems from a thermodynamic point of view. Int. J. Prod. Res. 42 24 (2004) 5167-5184
22. Silver E., Pyke D.F., and Peterson R. Inventory Management and Production Planning and Scheduling. third ed. (1998), Wiley & Sons
23. Moran M.J., and Shapiro H.N. Fundamentals of Engineering Thermodynamics. fourth ed. (2000), Wiley & Sons
24. Andresen B., and Gordon J.M. Optimal heating paths for maximizing entropy generation in a common class of finite-time heating and cooling processes. Int. J. Heat Fluid Flow 13 3 (1992) 294-299
25. Wee H.-M., and Law S.-T. Replenishment and pricing policy for deteriorating items taking into account the time-value of money. Int. J. Prod. Econ. 71 1-3 (2001) 213-220
26. Whewell R. Turning up the heat under the supply-chain. Logistics Focus 5 4 (1997) 18-22
27. Crowther J. Rationale of quantity discounts. Harvard Business Rev. 42 2 (1964) 121-127
28. Goyal S.K. An integrated inventory model for a single supplier-single customer problem. Int. J. Prod. Res. 15 1 (1976) 107-111
29. Banerjee A. A joint economic-lot-size model for purchaser and vendor. Decis. Sci. 17 3 (1986) 292-311
30. Li S.X., and Huang Z. Managing buyer-seller system cooperation with quantity discounts consideration. Comput. Oper. Res. 22 9 (1995) 947-958
31. Li S.X., Huang Z., and Ashley A. Improving buyer-seller system cooperation through inventory control. Int. J. Prod. Econ. 43 1 (1996) 37-46
32. Hill R.M. The single-vendor single-buyer integrated production-inventory model with a generalized policy. Eur. J. Oper. Res. 97 3 (1997) 493-499
33. Viswanathan S. Optimal strategy for the integrated vendor-buyer inventory model. Eur. J. Oper. Res. 105 1 (1998) 38-42
34. Goyal S.K. On improving the single-vendor single buyer integrated production inventory model with a generalized policy. Eur. J. Oper. Res. 125 2 (2000) 429-430