Demand estimation in EOQ models using second-order difference equations with full backlogging
摘要
This study introduces a difference equation for the demand function within the classical Economic Order Quantity (EOQ) model under the assumption of full backlogging. Traditionally, various forms of deterministic demand patterns have been considered, including continuous time-dependent functions such as linear, quadratic, and exponential forms, as well as stock-dependent and price-and-stock-dependent demands. In contrast, this paper considers a discrete-time framework in which demand is influenced by both the previous periods’ demands and the current time, thereby modeling demand as a difference equation.