Suchergebnisse

This article considers the effect of freight discounts and
disposals on the inventory policies of a profit‐maximising firm with
price‐elastic demand and with price as a mark‐up on the acquisition
cost. In addition, the cost of placing an order is in part dependent
upon a freight‐cost structure, sensitive to the size of the order and
upon the possibility of selling unwanted inventory at a lower price. A
numerical example is used to illustrate the resulting inventory
policies.