Research on changes of total cost of dynamic economic lot-size

Traditionally. scholars mostly considered ordering cost as a known constant rather than a parameter in discussing issues related to dynamic economic l ot-size with single-stage and multiple period. How changes of ordering cost would affect the total cost of dynamic economic lot-size were rarely explo red by the scholars. This article concurrently considers two factors-the ra tio between lowered ordering cost of each period and original ordering cost of each period (ordering cost ratio, R1), and the ratio between the sum of rotal ordering cost and total holding cost and total buying cost (R2) to e xplore the influence of R1 and R2 of dynamic economic lot-size on total cos t (total cost ratio. T%). Due to the complexity of the mathematical method, this article adopts a sim ulation method for discussion. The conclusions indicate: (i) total cost wil l be significantly decreased when ordering cost is decreased. this conclusi on overcomes the problem of ineffective expression when a traditional mathe matical method is applied (ii) total cost will be decreased when R1 is iden tical and R2 increases: and (iii) total cost will be decreased when R1 decr eases and the value of R2 increases.