The Effect of the Timing of Disbursements on Order Quantities

Abstract

This paper looks at the effect that the timing of disbursements may have on order quantities. Traditional analyses for determining order quantities assume that all disbursements are made at the same point in time. In this paper it is shown that large timing differences may significantly affect order quantities. Firms operating in these environments may want to adjust their order quantities accordingly.

Keywords:

• Inventory
• Lot Sizes
• Purchasing