Article ID: | iaor198849 |
Country: | United States |
Volume: | 20 |
Issue: | 3 |
Start Page Number: | 292 |
End Page Number: | 294 |
Publication Date: | Sep 1988 |
Journal: | IIE Transactions |
Authors: | Ardalan Alireza |
When a supplier reduces the price of a product temporarily a buyer might be able to improve the effectiveness of his inventory system by placing a special order during the sale period. This paper analyses the effects of a special order on inventory costs and develops optimal ordering policies in response to a sale.