Sunday, October 5, 2008

Backordering Article

I think this article was very hard to comprehend. I think it was too heavy on the math portion and the explanation seemed confusing. I realize that it basically used an algebraic approach to analyze whether allowing back ordering or not is the optimal policy. The author used an algebraic model to calculate whether a fixed backordering cost was large enough that using backordering at all would be too cost prohibitive, as in whether it was larger than the average? EOQ cost.

Mark Brislin

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