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- Publisher
- Emerald Publishing
- Copyright
- Copyright © Emerald Group Publishing Limited
- ISSN
- 0144-3577
- DOI
- 10.1108/01443579110143197
- Publisher site
- See Article on Publisher Site
Abstract
This article considers the effect of freight discounts anddisposals on the inventory policies of a profitmaximising firm withpriceelastic demand and with price as a markup on the acquisitioncost. In addition, the cost of placing an order is in part dependentupon a freightcost structure, sensitive to the size of the order andupon the possibility of selling unwanted inventory at a lower price. Anumerical example is used to illustrate the resulting inventorypolicies.
Journal
International Journal of Operations & Production Management – Emerald Publishing
Published: Apr 1, 1991