This paper improves upon the existing literature surrounding the production order quantity inventory model in which unit cost and daily production are assumed to be constant. By including economies of scale into the model, we examine its impact on production order quantity and total cost. The...

It has been long recognized that an ad valorem tax rate on revenues (demand) has its counterpart in costs (supply). Such a one to one correspondence is referred to as the Musgravian transformation. The transformation is monotonic and nonlinear. However, the property of concavity of the tax...