Response to a factual comment on the erratum to 'Incorporating transportation cost in the lot size and pricing decisions with downward sloping demand' by Prof. S.K. Goyal

摘要

We appreciate the comment by Prof. Goyal (2007). There appear to be two approached in modeling carrying costs in inventory models. The common approach is to take a system wide view and use common carrying charge parameter. This is parameter I = Annual hol