Erratum to: “Incorporating transport cost in the lot size and pricing decisions with downward sloping demand” [International Journal of Production Economics 95, 297–305]

We correct our earlier formulation [Abad, P., Aggarwal, V., 2005. Incorporating transport cost in the lot size and pricing decisions with downward sloping demand. Int. J. Prod. Econ. 95, 297–305] in which the carrying cost was assumed to be proportional to the purchase cost. Since the buyer/reseller is responsible for paying for freight, the item value for estimating carrying cost should include not only the purchase cost but also the per unit transportation cost [Hadley, G., Whitin, T., 1963. Analysis of Inventory Systems. Prentice-Hall, Englewood Cliffs, NJ; Tersine, R.J., Barman, S., 1994. Optimal lot sizes for unit and shipping discount situations. IIE Transaction, 26(2), 97–101].