Ensuring feasibility in 'a generalized quantity discount pricing model to increase supplier's profits'

Research output: Contribution to journalResearch articleContributedpeer-review

Contributors

  • U. Buscher - , University of Würzburg (Author)
  • G. Lindner - , Otto von Guericke University Magdeburg (Author)

Abstract

Lee and Rosenblatt examine ordering and quantity discount decisions for a single-vendor-single-buyer system from the perspective of the supplier. By imposing a constraint on the amount of price discount which may be offered to the purchaser they suggest a procedure for determining the optimal solution regarding the underlying planning problem. However, the proposed algorithm can end up with an infeasible solution. In this paper, we analyse the reason why this may happen and provide a fast computational procedure which simultaneously guarantees optimality and feasibility.

Details

Original languageEnglish
Pages (from-to)667-670
Number of pages4
JournalJournal of the Operational Research Society : OR
Volume55
Issue number6
Publication statusPublished - Jun 2004
Peer-reviewedYes
Externally publishedYes

External IDs

Scopus 3042595693
ORCID /0000-0003-4711-2184/work/170104666

Keywords

Keywords

  • Buyer-vendor coordination, Discount purchasing, Inventory, Lot-sizing model