Economic replenishment strategies for announced price increases

Economic replenishment strategies for announced price increases

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Article ID: iaor199967
Country: Netherlands
Volume: 92
Issue: 2
Start Page Number: 266
End Page Number: 280
Publication Date: Jul 1996
Journal: European Journal of Operational Research
Authors:
Abstract:

The usual model for determining the optimal replenishment lot size for an announced price increase is the basic economic order quantity (EOQ) model. This analysis extends the logic to a composite lot sizing model that can be disaggregated into a family of hybrid models with additional operational flexibility. The composite model permits broader diversity and the ability to decompose complexity. It provides decision support resourcefulness with its resultant economies.

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