Optimal contract quantity versus optimal shopping quantity

Article Abstract:

A study on a modified version of the economical ordering quantity model is discussed. The study proposed that if the optimal shipping contract is infinity and the optimal shipping quantity is independent of the contract quantity, management should balance the potential risks associated with long-term buyer-vendor agreements and the reduction of total annual costs. However, it is shown that the optimal shipping quantity should not be determined by setting the optimal shipping contract to infinity.

Inventory control

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Performance evaluation of lot-sizing methods with multiple quantity discounts in a rolling horizon environment

Article Abstract:

Monte Carlo tests are conducted to assess the performance of four lot-sizing algorithms fora single-level material requirements planning system in the commonly occurring manufacturing environment of multiple quantity discounts and rolling horizons. The four lot sizing procedures examined are the least unit cost procedure, McLaren's order moment technique, the incremental part period algorithm and theWagner Whitin method.

Usage, Monte Carlo method, Monte Carlo methods, Economic lot size, Material requirements planning

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