Journal ArticleDOI
Order Quantities with Temporary Price Reductions
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In this paper, the authors studied the temporary price-change problem, in which the objective is to minimize discounted cash flows, and they considered the cash flows associated with ''inventory maintenance' costs which occur more or less continuously over time.Abstract:
The temporary price-change problem is studied, in which the objective is to minimize discounted cash flows. As pointed out by Goyal in an earlier paper, only the cash transactions at purchase times (i.e. the payments for the goods and the ordering costs) were considered. The cash flows associated with `inventory maintenance' costs which occur more or less continuously over time were neglected, which changes the structure of the model. Examples of these costs include storage, insurance, record-keeping, deterioration and obsolescence costs. In this paper, these continuously generated cash flows are included in the analysis, thereby making the new model more applicable to practical situations. This model is of interest because order-quantity decisions often must be made under conditions of both temporary price reductions and/or imminent price increases. These changes occur frequently in practice.read more
Citations
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Journal ArticleDOI
A classification of literature on determining the lot size under quantity discounts
W. C. Benton,Seungwook Park +1 more
TL;DR: In this paper, the authors classify the literature on lot sizing determination under several types of discount schemes and discuss some of the significant literature in this area over two decades and also some future research areas have been identified.
Journal ArticleDOI
Inventory Management: An Overview, Canadian Publications, Practical Applications and Suggestions for Future Research
TL;DR: The paper points out the continuing gap between theory and practice, followed by a number of suggested research topics to help bridge the gap.
Journal ArticleDOI
Optimal order size to take advantage of a one-time discount offer with allowed backorders
TL;DR: An inventory model for determining the optimal ordering policies for a buyer who operates an inventory policy based on an EOQ-type model with planned backorders when the supplier offers a temporary fixed-percentage discount and has specified a minimum quantity of additional units to purchase is developed.
Journal ArticleDOI
Economic purchasing strategies for temporary price discounts
Richard J. Tersine,Samir Barman +1 more
TL;DR: In this paper, a composite EOQ model is proposed for determining the optimal stock replenishment strategy for a temporary price reduction, which can be decomposed into a family of hybrid models with broader operational flexibility.
Journal ArticleDOI
Lot-sizing decisions under limited-time price incentives: A review
TL;DR: The problem of determining the optimal order quantities for an inventoried item, when the vendor offers a limited-time price reduction is both interesting and important as mentioned in this paper, and it has received continued attention of academic researchers for over four decades and it is important given its economic implication in a variety of practical settings.
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Journal ArticleDOI
Lot Sizes for One-Time-Only Sales
TL;DR: In this paper, the order quantity which minimizes discounted cash flows for a one-time-only sale is determined, and approximate solutions are presented which recommend the order quantities, the associated cost savings, minimum acceptable percentage price discount and minimum vendor quantity requirements.