On the Lambert W function: Economic order quantity applications and pedagogical considerations

Abstract

We illustrate the use of the Lambert W function by analysing two Economic Order Quantity (EOQ) scenarios: an EOQ model with perishable inventory; and a Net Present Value analysis of an EOQ problem with trim loss. Both scenarios are motivated by real-world situations. Via these two examples, we reflect upon the pedagogical aspects of using the Lambert W function. We present a Lambert W function ‘look-up’ table for classroom use and a Microsoft Excel ‘Add-In’ for self-study and practical use. We also illustrate the use of the Laplace transform to conduct NPV analyses of the EOQ model.

Publication
International Journal of Production Economcis, 40 (2), pp756–764
Date
Links
Next
Previous