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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Andrew J. Clark & Herbert Scarf, 2004.
"Optimal Policies for a Multi-Echelon Inventory Problem,"
INFORMS, vol. 50(12_supple), pages 1782-1790, December.
- Andrew J. Clark & Herbert Scarf, 1960. "Optimal Policies for a Multi-Echelon Inventory Problem," Management Science, INFORMS, vol. 6(4), pages 475-490, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yi-Ju Su).
If references are entirely missing, you can add them using this form.