The Robustness Of The Basic EOQ

The robustness of the basic Economic Ordering Quantity (EOQ) is studied for annual demand, set-up cost, and holding cost from various uniform and normal probability distributions.  Instead of comparing TC*( ) and TC*(Q*) where  is an estimate of Q*, the ( ) and TC*(Q*) are compared where ( ) is the total cost from realizations of annual demand, set-up cost, and holding cost.  Simulation results show the robustness of the basic EOQ