| Article ID: | iaor20071086 |
| Country: | Netherlands |
| Volume: | 103 |
| Issue: | 2 |
| Start Page Number: | 893 |
| End Page Number: | 894 |
| Publication Date: | Jan 2006 |
| Journal: | International Journal of Production Economics |
| Authors: | Aggarwal Vijay, Abad P.L. |
| Keywords: | transportation: general |
We correct our earlier formulation [Abad, P., Aggarwal, V., 2005. Incorporating transport cost in the lot size and pricing decisions with downward sloping demand. Int. J. Prod. Econ. 95, 297–305] in which the carrying cost was assumed to be proportional to the purchase cost. Since the buyer/reseller is responsible for paying for freight, the item value for estimating carrying cost should include not only the purchase cost but also the per unit transportation cost.