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Inventory Policies with Freight Discounts and Disposals

Inventory Policies with Freight Discounts and Disposals 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Operations & Production Management Emerald Publishing

Inventory Policies with Freight Discounts and Disposals

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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 ManagementEmerald Publishing

Published: Apr 1, 1991

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