Application of “EOQ” for Some Type of Transportation Problems

Abstract

A type of transportation problem is analysed on, a) whether the EOQ/EBS formula is really applicable, b) whether the information on “Indifference point†is useful in reducing the total cost and c) how and to what extent, some type of restrictions in the activity, increases the total cost. Also, various intuitive assumptions that appear to save cost, were proved wrong through proper calculations.