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The combined effects of interest and inflation rates on inventory systems: A comparative analysis across countries
Journal article   Peer reviewed

The combined effects of interest and inflation rates on inventory systems: A comparative analysis across countries

Amir Khakbaz, Walid Mensi, Erfan Babaee Tirkolaee, Shawkat Hammoudeh and Vladimir Simic
International journal of production economics, v 266, 109035
Dec 2023
DOI: https://doi.org/10.1016/j.ijpe.2023.109035
Featured in Collection :   UN Sustainable Development Goals @ Drexel

Abstract

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.

Metrics

14 Record Views
7 citations in Web of Science
5 citations in Scopus

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UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#12 Responsible Consumption & Production

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Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Engineering, Industrial
Engineering, Manufacturing
Operations Research & Management Science
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