S. Mehra et Mm. Amini, A SIMULATION ANALYSIS OF ORDERING POLICIES UNDER INFLATIONARY CONDITIONS, International journal of operations & production management, 14(10), 1994, pp. 72-83
In today's competitive global economy, every business can benefit from
managing its operations in a cost-efficient manner. Managing material
s should be no exception and the effect of inflation on ordering polic
ies for purchased materials and supplies should be carefully analysed.
It is very likely that a business can place itself in an advantageous
position by changing its ordering policies in response to unfavourabl
e economic conditions in its future operating environment. Presents a
total cost model and, through simulation analysis, shows that inflatio
nary conditions do affect lot sizes. Also shows that there are instanc
es where lot sizes stay stable before changing again in response to in
crease in inflationary rates.