Second-Degree Monopoly Wholesaler with Variable Ordering Costs
AbstractOrdering costs are usually considered as fixed costs. For the case of one seller and two identical buyers, we examine ordering charges that are proportional to the number of units ordered. We find that no extra profits will be generated, neither for the producer nor for the retailers. Thus, proportional ordering costs are not economically justified.
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Bibliographic InfoArticle provided by College of Business, and College of Finance, Feng Chia University, Taichung, Taiwan in its journal International Journal of Business and Economics.
Volume (Year): 10 (2011)
Issue (Month): 1 (April)
retailers; ordering charges; excess demand; excess supply;
Find related papers by JEL classification:
- C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
- L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
- M11 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Production Management
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- Andrew J. Clark & Herbert Scarf, 1960.
"Optimal Policies for a Multi-Echelon Inventory Problem,"
INFORMS, vol. 6(4), pages 475-490, July.
- Andrew J. Clark & Herbert Scarf, 2004. "Optimal Policies for a Multi-Echelon Inventory Problem," Management Science, INFORMS, vol. 50(12_supple), pages 1782-1790, December.
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