On Extending Russell and Krajewski's Algorithm for Economic Purchase Order Quantities

Joseph R. Carter, Bruce G. Ferrin, Craig Carter

Research output: Contribution to journalArticle

10 Scopus citations

Abstract

Russell and Krajewski presented an optimal purchase order quantity algorithm that considered the effect of the transportation rate structure for less‐than‐truckload (LTL) shipments. The authors applied the Russell and Krajewski algorithm to a variety of freight classes and lengths‐of‐haul. Anomalous cases were found in which the freight rate schedule, when used with the suggested algorithm, resulted in incorrect order size decisions. In this comment, the authors consider the impact of these anomalies on the optimal order quantity and associated total costs. A procedure is presented to adjust the Russell and Krajewski algorithm to arrive at the optimal purchase order quantity and the lowest total annual cost.

Original languageEnglish (US)
Pages (from-to)819-829
Number of pages11
JournalDecision Sciences
Volume26
Issue number6
DOIs
StatePublished - 1995

Keywords

  • and Supply Chain Management
  • Distribution/Logistics
  • Inventory Management
  • Lot Sizing
  • Materials Management
  • Purchasing

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Strategy and Management
  • Information Systems and Management
  • Management of Technology and Innovation

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