| Article ID: | iaor1991414 |
| Country: | United States |
| Volume: | 30 |
| Start Page Number: | 68 |
| End Page Number: | 71 |
| Publication Date: | Apr 1989 |
| Journal: | Production and Inventory Management Journal |
| Authors: | Patterson Mike C. |
When a decision is made to purchase inventory which allows a quantity discount, extra inventory is carried. This decision can be viewed as an investment of available funds. A model and a computer program are given which will determine if the savings represents an acceptable rate of return on investment.