On some inventory models involving shortages under an announced price increase

This paper presents an infinite-horizon deterministic inventory model that handles inventory shortages under an announced price increase. Depending on the length of the intervening period between the announcement date and the effective date of price revision, the decisions of a customer (wholesaler) vary widely. A simplified technique useful in many situations is developed here to tackle the problems faced by a customer in such cases. Illustrations are also presented through some suitable numerical examples.