An easy method to derive EOQ and EPQ inventory models with backorders

Recently, a cost minimization method to determine the lot size for the EOQ/EPQ models with backorders was published. This method is based on the well-known arithmetic–geometric mean inequality. Although the cost minimization method is correct and interesting, it does not focus on deriving the backorders level. This paper proposes another simple approach. The proposed method finds both the lot size and the backorders level.