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    Title: A multi-product EOQ model with pricing consideration-T.C.E. Cheng's model revisited
    Other Titles: 考慮價格的多產品最佳訂購量模式--再論T.C.E. CHENG的模式
    Authors: 陳正綱;Chen, Cheng-kang;Min, K. Jo
    Contributors: 淡江大學企業管理學系
    Date: 1994-10
    Issue Date: 2011-09-02 09:51:24 (UTC+8)
    Publisher: Elsevier
    Abstract: We present two major revisions/corrections regarding a recent paper by T.C.E. Cheng [Computers ind. Engng18, 529–534 (1990)]. Firstly, we note that a critical assumption of equal replenishment cycle length for all products is stated, but not incorporated into the mathematical formulation in Cheng. In this paper, we re-formulate the problem with equal replenishment cycle length incorporated and derive the corresponding Kuhn-Tucker optimality conditions. Next, under linear demand assumption, we show that the closed-form solutions provided by Cheng may result in non-optimal solutions. The reason is that Cheng failed to derive conditions under which closed-form solutions may be optimal. In this paper, by employing trigonometric methods {see e.g. Chap. 2 of Griffiths [Introduction of the Theory of Equations. Wiley, New York (1945).] or Appendix of Porteus [Mgmt Sci.31, 998–1010 (1985)]}, we derive an optimal closed-form solution that is unqiue and obtain conditions under which the optimal closed-form solution is valid.
    Relation: Computers and industrial engineering 26(4), pp.787-794
    DOI: 10.1016/0360-8352(94)90013-2
    Appears in Collections:[Graduate Institute & Department of Business Administration] Journal Article

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