AN ANALYTICAL APPROACH OF SENSITIVITY ANALYSIS FOR EOQ

Authors

  • Hui Ming Teng Department of Industrial and Systems Engineering, Chung Yuan Christian University
  • Yu Fang Chiu Department of Industrial and Systems Engineering, Chung Yuan Christian University
  • Ping Hui Hsu Deoartment of Business Administration at De Lin Institute of Technology
  • Hui Ming Wee Department of Industrial and Systems Engineering, Chung Yuan Christian University

DOI:

https://doi.org/10.23055/ijietap.2012.19.4.362

Keywords:

Economic order quantity (EOQ), Sensitivity analysis, Gradient, Engineering Economy.

Abstract

This study develops an analytical approach of sensitivity analysis for traditional economic order quantity (EOQ). We define an optimal function in which the parameters are treated as variables. The graph of the optimal solution is provided to understand the sensitivity. The gradient is treated as a direction for finding out the optimal solution. Numerical example is provided to illustrate the theory.

Author Biographies

Hui Ming Teng, Department of Industrial and Systems Engineering, Chung Yuan Christian University

Teng is a PhD student in the Department of Industrial and Systems Engineering at Chung Yuan Christial University in Taiwan.Teng also is a lecture in Department of Business Administration at Chihlee institute of Technology

Yu Fang Chiu, Department of Industrial and Systems Engineering, Chung Yuan Christian University

Chiu is an assistant professor in Chung Yuan Christian University

Ping Hui Hsu, Deoartment of Business Administration at De Lin Institute of Technology

Hsu is an Associate professor in the Deoartment of Business Administration at De Lin Institute of Technology

Hui Ming Wee, Department of Industrial and Systems Engineering, Chung Yuan Christian University

Wee is a professor in Chung Yuan Christian University

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Published

2012-12-03

How to Cite

Teng, H. M., Chiu, Y. F., Hsu, P. H., & Wee, H. M. (2012). AN ANALYTICAL APPROACH OF SENSITIVITY ANALYSIS FOR EOQ. International Journal of Industrial Engineering: Theory, Applications and Practice, 19(4). https://doi.org/10.23055/ijietap.2012.19.4.362

Issue

Vol. 19 No. 4 (2012)

Section

Supply Chain Management

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