We conclude the analysis of the EOQ model by
noting another special case: if only one backorder
cost, p; is assumed, and p ¼ 0; then from (7) and
(8), both Q and S are infinite in Case 2. Thus,
when only a fixed backorder cost p applies, the
optimal strategy is either to stay with the basic
EOQ (if pX
ffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi
2Kh=D
p
), or backorder everything
(if po
ffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi
2Kh=D
p
).
We conclude the analysis of the EOQ model bynoting another special case: if only one backordercost, p; is assumed, and p ¼ 0; then from (7) and(8), both Q and S are infinite in Case 2. Thus,when only a fixed backorder cost p applies, theoptimal strategy is either to stay with the basicEOQ (if pXffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi2Kh=Dp), or backorder everything(if poffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi2Kh=Dp).
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