Inventory Control with Price Fluctuations

Abstract

The effect of price fluctuations on optimal inventory control policy can be considerable. Most inventory models assume that purchase prices or production unit costs remain constant over the planning period. Computation of optimal inventory policy, without taking price fluctuations into account, can give results which differ considerably from the optimal inventory policy when price changes are ignored. It is desirable to consider price fluctuations as a parameter in inventory models.

Citation

Bachman, A. (1986), "Inventory Control with Price Fluctuations", International Journal of Operations & Production Management, Vol. 6 No. 3, pp. 58-64. https://doi.org/10.1108/eb054767