An easy method to derive EOQ and EPQ inventory models with backorders
Recently, a cost minimization method to determine the lot size for the EOQ/EPQ models with backorders was published. This method is based on the well-known arithmetic-geometric mean inequality. Although the cost minimization method is correct and interesting, it does not focus on deriving the backorders level. This paper proposes another simple approach. The proposed method finds both the lot size and the backorders level.
This paper details the development of a simplified MRP through the equation of Leontief (linear algebra), and proposes its teaching in three parts a) data collection and recognition of the relationship between materials, b) a list of variables and mathematics explanation, c) obtaining results and verifying them by software. The academic exercise is about the flow of ingredients required to comply with a plan for food services and is intended to be a learning tool to facilitate the study of this method in the hospitality management courses.