TY - JOUR
T1 - The combined effects of interest and inflation rates on inventory systems
T2 - A comparative analysis across countries
AU - Khakbaz, Amir
AU - Mensi, Walid
AU - Tirkolaee, Erfan Babaee
AU - Hammoudeh, Shawkat
AU - Simic, Vladimir
N1 - Publisher Copyright:
© 2023 Elsevier B.V.
PY - 2023/12
Y1 - 2023/12
N2 - Interest and inflation rates are among the most important economic indicators of any country. Inventory management is also known as one of the most critical components of supply chains and logistics systems. This study conducts a comparative study to analyze the combined effects of interest and inflation rates on inventory systems in different countries as part of macroeconomics. To do so, a novel inventory model is developed by accounting for interest rate, inflation, and increasing linear demand over time which affect inventory costs. In terms of the main parameters, the developed model is divided into two groups, where each group is solved separately. The results demonstrate that Venezuela, Sudan, Zimbabwe, Iran, and Liberia are the five countries with the most potential volume of hoarding of goods. These countries should increase their interest rates by at least 118.06%, 22.42%, 7.84%, 10.84%, and 6.94%, respectively, to counter the increasing amount of hoarding. Moreover, the findings reveal that Venezuela, Zimbabwe, Iran, Sudan, and Turkey, have the highest cost of inventory systems.
AB - Interest and inflation rates are among the most important economic indicators of any country. Inventory management is also known as one of the most critical components of supply chains and logistics systems. This study conducts a comparative study to analyze the combined effects of interest and inflation rates on inventory systems in different countries as part of macroeconomics. To do so, a novel inventory model is developed by accounting for interest rate, inflation, and increasing linear demand over time which affect inventory costs. In terms of the main parameters, the developed model is divided into two groups, where each group is solved separately. The results demonstrate that Venezuela, Sudan, Zimbabwe, Iran, and Liberia are the five countries with the most potential volume of hoarding of goods. These countries should increase their interest rates by at least 118.06%, 22.42%, 7.84%, 10.84%, and 6.94%, respectively, to counter the increasing amount of hoarding. Moreover, the findings reveal that Venezuela, Zimbabwe, Iran, Sudan, and Turkey, have the highest cost of inventory systems.
KW - Golden interest rate
KW - Hoarding
KW - Inflation rate
KW - Inventory costs
KW - Inventory systems
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U2 - 10.1016/j.ijpe.2023.109035
DO - 10.1016/j.ijpe.2023.109035
M3 - Article
AN - SCOPUS:85171359653
SN - 0925-5273
VL - 266
JO - International Journal of Production Economics
JF - International Journal of Production Economics
M1 - 109035
ER -