Pricing and Inventory Policies,
Abstract
The purpose of the research was to explore the feasibility of using profit rather than cost as the criteria for solving several traditional inventory systems. The motivation for profit optimization is basic to theory of the firm. The underlying equation for this research is: Profit = Sales - Costs. The costs considered are exclusively those associated with inventory. Sales is considered a linear or quadratic function of price. In deciding whether this approach was feasible, three inventory systems were examined; economic lot-size, economic order-level, and economic order-level - lot-size systems. (Modified author abstract)
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 01, 1972
- Accession Number
- AD0768139
Entities
People
- James David Finley
Organizations
- United States Army Materiel Command