A Backlog Inventory Model During Restricted Sale Periods

Rhonda L. Aull-Hyde

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Supply Chain and Inventory Management Consumer Market Behavior and Pricing Sustainable Supply Chain Management

Abstract

Optimal purchasing policies are derived for a continuous review inventory system in which backlogs are permissible and temporary price discounts are available. This paper derives such policies assuming that the sale price is not available at the regularly-scheduled replenishment time. Results indicate that, under specific conditions, maximum positive cost savings are generated when a special order is placed at the end of the sale period.

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1979Decision Systems for Inventory Management and Production Planning 1985Optimal Ordering Strategies for Announced Price Increases 1988Optimal Ordering Policies in Response to a Sale 1992Evaluation of Supplier-Restricted Purchasing Options Under Temporary Price Discounts 1978Forward Buying in Response to Announced Price Increases 1981Temporary Price Discounts and E.O.Q.

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2013Joint replenishment policy with backordering and special sale 2011Optimal inventory system with two backlog costs in response to a discount offer

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