Article ID: | iaor19971253 |
Country: | United Kingdom |
Volume: | 47 |
Issue: | 9 |
Start Page Number: | 1192 |
End Page Number: | 1200 |
Publication Date: | Sep 1996 |
Journal: | Journal of the Operational Research Society |
Authors: | Aull-Hyde Rhonda L. |
Optimal purchasing policies are derived for a continuous review inventory system in which backlogs are permissible and temporary price discounts are available. This paper derives such policies assuming that the sale price is not available at the regularly-scheduled replenishment time. Results indicate that, under specific conditions, maximum positive cost savings are generated when a special order is placed at the end of the sale period.