Access the full text.
Sign up today, get DeepDyve free for 14 days.
Should an organization modify its ordering policies when a supplier announces an impending price increase for an item? Announced price increases are a common economic phenomenon. This article develops the optimal stock replenishment strategies in response to a price change. It is shown that the optimal response depends on the number of order cycles before the price change becomes effective. The potential cost savings can be substantial. The familiar model for determining the optimal stock replenishment strategy for an impending price increase assumes a buyer has limited replenishment opportunities before the increase. This paper extends the model to include multiple replenishment opportunities. Optimal replenishment strategies are developed for any length of notification period and cost savings are identified.
The International Journal of Logistics Management – Emerald Publishing
Published: Jan 1, 1991
Keywords: Orders and ordering; Prices; Stock control; Cost reduction
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.