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Journal of Business Ecosystems
Article . 2026 . Peer-reviewed
License: CC BY
Data sources: Crossref
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The EOQ Paradox

Why Ford Harris's 1913 Formula Cannot Navigate Today's Business Ecosystems? A Framework for Ecosystem-Aware Inventory Management in Capital-Intensive Industries
Authors: Deepak R. Chandran; Sanath Kumar; Abhay Nadkarni; Satish K. Shenoy; Raghukumar Bommenahalli;

The EOQ Paradox

Abstract

Traditional Economic Order Quantity (EOQ) models, developed by Ford Harris in 1913, assume isolated decisions and stable conditions that no longer exist in modern business ecosystems. This manuscript examines why EOQ formulas become insufficient in aerospace and EV charging industries, where interdependencies create cascade failures with significant system-level consequences. Analysis of the Boeing 737 MAX crisis reveals how traditional optimization can generate large in ecosystem losses through network effects that EOQ cannot capture. The authors present a framework for ecosystem-aware inventory management incorporating total ecosystem costs, dynamic parameters, and coordination mechanisms.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average