ON EXTENDING RUSSELL AND KRAJEWSKIS ALGORITHM FOR ECONOMIC PURCHASE ORDER QUANTITIES

Russell and Krajewski presented an optimal purchase order quantity alg orithm that considered the effect of the transportation rate structure for less-than-truckload (LTL) shipments. The authors applied the Russ ell and Krajewski algorithm to a variety of freight classes and length s-of-haul, Anomalous cases were found in which the freight rate schedu le, when used with the suggested algorithm, resulted in incorrect orde r size decisions. In this comment, the authors consider the impact of these anomalies on the optimal order quantity and associated total cos ts. A procedure is presented to adjust the Russell and Krajewski algor ithm to arrive at the optimal purchase order quantity and the lowest t otal annual cost.