Economic purchasing strategies for temporary price discounts

Article Abstract:

The simple EOQ model is used as a basis for the optimal stock replenishment strategy to take advantage of a temporary price reduction. A composite EOQ model that can be decomposed into a family of hybrid models offering greater operational flexibility was developed to enable flexibility in dealing with various operational requirements. These operational requirements include freight rate discounts, quantity discounts, credit situations, modified quality reject policies and resource limitations.

Purchasing

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A distribution multi-echelon lot-size model

Article Abstract:

Avertical model to determine the optimal number of echelons for stock storage in lot-size models is presented. The optimization of multi-echelon inventory theory uses heuristics as the best model. Problems with the model involve the interpretation of finite shortage costs, its static nature and its ability to deal with stochastic demand.

Economic lot size

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Analysis of net inventory in continuous review models with random lead time

Article Abstract:

The maintenance of net inventory levels under conditions of varying lead times is discussed. This model assumes that ordering policies are subject to continuous review. Another assumption is that no crossings of lead times are made. It is presented as an alternative and realistic approximation of net inventory control policy.

Analysis, Lead time

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