Secondly a critical examination of EOQ and its more popular derivatives summarises the arguments that are well documented. The paper debates the issues specifically related to the key elements of the cost of inventory and the cost of ordering as used within the EOQ formula. The key weakness is that often the data required for accurate evaluation of the elements of the EOQ are not typically available in most businesses.
Finally the paper examines an alternative technique; the K-curve, first identified in the 1990s, which is derived by combining the two techniques of Pareto and EOQ and shows how it successfully eliminates the weaknesses and enhances the strengths of both Pareto and EOQ. There is an increasing body of academic evidence that demonstrates the robustness of K-curve as a solution to the weaknesses of Pareto and EOQ.