Classic inventory models use average cost functions. It is generally accepted that these models should account for the time value of money. They do so not by considering the timing of cash-flows, but by including opportunity costs. The Net Present Value (NPV) framework has long been used to...

While many review articles exist on (deterministic) lot sizing models used in the context of price and quantity discounts, buyer–vendor coordination, supply chain management, and joint economic lot sizing problems, they do not convey the impact of important findings which date back to at least...