TY  - JOUR
AB  - Should an organization modify its ordering policies when a supplier announces an impending price increase for an item? Announced price increases are a common economic phenomenon. This article develops the optimal stock replenishment strategies in response to a price change. It is shown that the optimal response depends on the number of order cycles before the price change becomes effective. The potential cost savings can be substantial. The familiar model for determining the optimal stock replenishment strategy for an impending price increase assumes a buyer has limited replenishment opportunities before the increase. This paper extends the model to include multiple replenishment opportunities. Optimal replenishment strategies are developed for any length of notification period and cost savings are identified.
VL  - 2
IS  - 1
SN  - 0957-4093
DO  - 10.1108/09574099110804652
UR  - https://doi.org/10.1108/09574099110804652
AU  - Tersine Richard J.
AU  - Schwarzkopf Albert B.
PY  - 1991
Y1  - 1991/01/01
TI  - Optimal Transition Ordering Strategies with Announced Price Increases
T2  - The International Journal of Logistics Management
PB  - MCB UP Ltd
SP  - 26
EP  - 34
Y2  - 2024/04/19
ER  -