Optimal Ordering Strategies for Announced Price Increases

Sam G. Taylor and Charles E. Bradley
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Sam G. Taylor: The University of Wyoming, Laramie, Wyoming
Charles E. Bradley: The University of Wyoming, Laramie, Wyoming

Operations Research, 1985, vol. 33, issue 2, 312-325

Abstract: The familiar model for determining the optimal ordering strategy, given an announced price increase, assumes that the buyer has an opportunity to place an order at the end of the next economic order quantity cycle before the price increase takes effect. This paper extends the price increase model by relaxing the requirement on the timing of the price increase. Specifically, we develop optimal ordering strategies for situations where the price increase becomes effective at any future specified time. We also calculate savings for alternate ordering strategies.

Keywords: 334 ordering strategies for price increases; 357 ordering strategies for price increases (search for similar items in EconPapers)
Date: 1985
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Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:oropre:v:33:y:1985:i:2:p:312-325

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