Short & sweet: Andler process

…is a method developed by Kurt Andler in 1929 for calculating economic lot sizes, which attempts to find the minimum of ordering and storage costs. In English, the process is referred to as Economic or Equal Order Quantity (EOQ).

Our tip:

In addition to the usual idealized boundary conditions for calculating batch sizes, the Andler method assumes constant demand. For this purpose, a constant batch size is determined using the Andler method and it is assumed that this is ordered or produced at constant intervals. Under other boundary conditions, the determined batch size is not economical. It is better to use the Wagner-Whitin method, which does not calculate static values but recalculates the ordering policy in every demand situation.

Further information on this topic can be found here:

Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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