This palxr ddresscs the inventory control problem of determining economic order quantities during inflation. A simple average annual cost ndel is constructed for which a closed-form solution is found. The solutions thus generntcd are then compared with the optimal solutians to n 'theoretically correct' model whose objective is to minlmize the discounted sum of all future posts. An eal-sustivosenvitivitya nalysisshows thesimple closed-form nulutiun to compnR fnvournhly with the minimum discounted cost solution over n wide mnge of problem pnmmetem.
All Science Journal Classification (ASJC) codes
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering