As the long arm of the grinding, deep financial crisis continues to haunt the global economy, the effects of inflation and time value of money cannot be oblivious to an inventory system. Inflation, defined as a general rise in the prices of goods and services over a period of time, has monetary depreciation as one of its major side effects. And, since inventories correspond to substantial investment in capital for any organization, it would be unethical if the effects of inflation and time value of money are not considered while determining the optimal inventory policy. Moreover, deterioration of items is a phenomenon which cannot be ignored, as it may yield misleading results. Further, under the inflationary conditions, the different cost parameters including the price are bound to vary from cycle to cycle over the planning horizon. Another important factor is shortages which no retailer would prefer, and in practice are partially backlogged and partially lost. In order to convert the lost sales into sales, the retailer offers such customers an incentive, by charging them the price prevailing at the time of placing an order, instead of the current inflated price. Therefore, bearing in mind these facts, the present paper develops an inventory model for a retailer dealing with deteriorating items under inflationary conditions over a fixed planning horizon. The objective is to derive the optimal number of cycles and cycle length that maximizes the net present value of the total profit over a fixed planning horizon. An appropriate algorithm has been proposed to obtain the optimal solution. Finally, a numerical example is provided to illustrate the proposed model. Sensitivity analysis of the optimal solution with respect to major parameters is carried out and some managerial inferences have been presented.

In this article, the research team systematized the theoretical basis of the monetary transmission mechanism and the impact of interest rate channel in monetary transmission mechanism by Mishkin's approach and used the vector error correction model (VECM) to test the impact of interest rate channel in the monetary transmission mechanism in Vietnam in the period 2005 – 2019. There were 8 endogenous variables included in the VECM model; namely Consumer price index (CPI); Gross domestic product (GDP) at constant 2010 prices (GDPR); Money supply (M2); Refinancing interest rate (ISBV); Average lending interest rate in VND (ILR); Bilateral real exchange rate (ER); Credit to the economy (CRE); VN-Index (VN-INDEX); and, 2 exogenous variables: world consumer price index (PW) and US Federal Reserve interest rate (IFED). The results have shown that: money supply had a clearer effect on average lending interest rate than refinancing rate; Interest rate channel was an important channel to transfer the impact of monetary policy on inflation; Exchange rate and interest rates channel influenced economic growth in Vietnam more strongly than credit and financial asset prices channel did. Besides, the model results also confirm that in Vietnam, inflation in the past played an important role in determining current inflation.

In this study, we examine the relationship between GDP, export, import, private sector investment and inflation on insurance per capita of OPEC countries. Insurance is a non-banking institution that by making sure and secure, can make and develop manufacturing and service rendering easier. Insurance companies can make financial steady and reduce stress. So, it plays essential role in economy. For this aim, data over the period 2003-2011 is collected. We use regression and SPSS software for analysis. Results for 80 year – country show that there was a positive and significant correlation between GDP, export, import, inflation and insurance per capita, which shows whenever productivity increases, insurance increases too. Results also show that there was a positive relationship between import and insurance per capita. In addition, results show that there was a positive and significant relationship between inflation and dependent variable. However, there was no significant relationship between exports and insurance per capita. The results show that there was no significant relationship between GDP and insurance per capita and finally, there was a non-significant and negative relationship between private sector investment and insurance per capita.

Inflation is an important factor influencing traditional economic order quality models. Marketing strategy depends on inflation due to public demand and availability of the materials. This paper presents an optimal inventory policy for deteriorating items using exponential demand rate under permissible delay in payments. Mathematical model has been derived under two cases: case I: cycle time is greater than or equal to permissible delay period, case II: cycle time is less than permissible delay period by considering holding cost as a function of time. Numerical examples and sensitivity analysis are given to reflect the numerical results. Mathematica software is used for finding optimal solutions.

In the global critical economic scenario, inflation plays a vital role in deciding optimal pricing of goods in any business entity. This article presents two single-vendor single-buyer integrated supply chain inventory models with inflation and time value of money. Shortage is allowed during the lead time and it is partially backlogged. Lead time is controllable and can be reduced using crashing cost. In the first model, we consider the demand of lead time follows a normal distribution, and in the second model, it is considered distribution-free. For both cases, our objective is to minimize the integrated system cost by simultaneously optimizing the order quantity, safety factor, lead time and number of lots. The discounted cash flow and classical optimization technique are used to derive the optimal solution for both cases. Numerical examples including the sensitivity analysis of system parameters is provided to validate the results of the supply chain models.

In this study, we estimate the macroeconomics instability index over the period 1963-2003. Using the definition of Fischer and Bleaney, the study calculates the “macroeconomics instability index”. In order to compute the macroeconomics instability index, four sub-indices of inflation rate, the fractional ratio of budget to the gross national product, the ratio of foreign debt to the gross national product, and the ratio of the free exchange rate to the official exchange rate as the determinant variables of the macroeconomics instability are considered. Then, the study estimates the equations for long-term processes for each variable and determines the deviations from the real values. We also obtain the time series for the macroeconomics instability index, using the calculated simple mean of the variables’ deviations and discuss the results.

This paper deals with developing an inventory model for two warehouses. In today’s business era, there are various types of conditions such as discounts, bulk storage and seasonal products forcing the buyer to purchase the order more than owned warehouse capacity. To store the excess unit of purchase order, buyer arrange additional storage space called as rented warehouse. It is known that the demand of the seasonal products (as woolen garments) increases at the beginning of the season up to a certain time and then stabilizes to a constant rate for the remaining time of the season. The ramp type demand rate forces the buyer to store a higher quantity of the product at the beginning of the season. Most of the physical goods undergo decay or deterioration over time so we study deteriorating seasonal products in this paper. This two warehouse inventory model is developed with inflation and shortages. The model starts with rent warehouse, in first rent warehouse’s inventory level is depleted due to demand and deterioration. At this time own warehouse is depleted due to deterioration only. But after that the inventory level of owned warehouse is depleted due to both demand and deterioration. The shortages are considered in owned warehouse, which is partially backlogged. Numerical solution of the model is obtained to verify the optimal solution. Comprehensive sensitivity analysis has been carried out for showing the effect of variations in the parameters. The model is solved analytically by minimizing the total cost.

A two warehouse production inventory model is developed for deteriorating items under reliability consideration. The effect of trade credit is considered under inflation. Since, formulating a suitable inventory model is one of the major concerns for an industry, the main objective of this paper is to optimize the total related cost for reliable production process. The model is illustrated through numerical example. The sensitivity analyses of the cost function are performed due to different measures and some managerial inferences are presented.

This paper presents a unified multi items general inventory model for integrated production of new items and remanufacturing of returned and defected items for a finite planning horizon. In this paper, a production model that takes into account learning, instantaneous deterioration rate and inflation is proposed. In addition, we also consider that the holding cost is a non-negative, non-decreasing and continuous function of time. In this model, the preservation technology is used to reduce the rate of product deterioration. A theory is developed to find the optimal solution of the proposed model; it is then exemplified with the help of several numerical examples. An efficient solution procedure is also provided to find the optimal strategy. Finally, sensitivity of the optimal solution to changes in the values of different parameters of the system and the convexities of the cost functions are also studied and represented through the graphs.

This study develops an integrated production inventory model from the perspectives of vendor, supplier and buyer. The demand rate is time dependent for the vendor and supplier and buyer assumes the stock dependent demand rate. As per the demand, supplier uses two warehouses (rented and owned) for the storage of excess quantities. Shortages are allowed at the buyer’s part only and the unfulfilled demand is partially backlogged. The effect of imperfect production processes on lot sizing is also considered. This complete model is studied under the effect of inflation. The objective is to minimize the total cost for the system. A solution procedure is developed to find a near optimal solution for the model. A numerical example along with sensitivity analysis is given to illustrate the model.