EOQ is a clean formula for a smooth-demand model. Lumpy period demand changes the model, so the honest move is to solve the discrete instance directly.

highlighted = computed this step

Lumpy Demand

The four period demands are 2, 3, 1, and 4. Motivation: the demand arrives in named periods, so the model must decide when each period is covered.

dt=2,3,1,4d_t=2,3,1,4
Pinned lumpy demandThe demand row is the discrete instance solved by lot-sizing DP.lumpy demandabcdperiod1234demand2314

EOQ Assumption Check

The EOQ quantity 8 belongs to the smooth-demand model. Interpretation: lumpy periods require a period-by-period order plan instead.

EOQ formula scope differs from lumpy demand\text{EOQ formula scope differs from lumpy demand}
Pinned lumpy demandThe demand row is the discrete instance solved by lot-sizing DP.lumpy demandabcdperiod1234demand2314

Diagram note

Honesty note: EOQ is exact only for the idealized continuous constant-demand model: known steady demand, infinitely divisible order quantity, zero lead time, and no capacity. The demand table starts a different exact model. Pixel positions are rounded for layout; every number shown is exact.

switch models when the assumptions change\text{switch models when the assumptions change}
Pinned lumpy demandThe demand row is the discrete instance solved by lot-sizing DP.lumpy demandabcdperiod1234demand2314