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Incorporating quantity discounts to the EOQ model with transportation costs

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  • Mendoza, Abraham
  • Ventura, José A.

Abstract

This article extends a previous Economic Order Quantity (EOQ) model with two modes of transportation, namely truckload (TL) and less than truckload (LTL) carriers, by introducing all-units and incremental quantity discount structures into the analysis. Exact algorithms are developed for each quantity discount structure to compute optimal policies for single-stage models over an infinite planning horizon.

Suggested Citation

  • Mendoza, Abraham & Ventura, José A., 2008. "Incorporating quantity discounts to the EOQ model with transportation costs," International Journal of Production Economics, Elsevier, vol. 113(2), pages 754-765, June.
    • Handle: RePEc:eee:proeco:v:113:y:2008:i:2:p:754-765
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    Cited by:

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    5. Andriolo, Alessandro & Battini, Daria & Grubbström, Robert W. & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A century of evolution from Harris׳s basic lot size model: Survey and research agenda," International Journal of Production Economics, Elsevier, vol. 155(C), pages 16-38.
    6. Venegas, Bárbara B. & Ventura, José A., 2018. "A two-stage supply chain coordination mechanism considering price sensitive demand and quantity discounts," European Journal of Operational Research, Elsevier, vol. 264(2), pages 524-533.
    7. Engebrethsen, Erna & Dauzère-Pérès, Stéphane, 2019. "Transportation mode selection in inventory models: A literature review," European Journal of Operational Research, Elsevier, vol. 279(1), pages 1-25.
    8. Cheng-An Tsai & Che-Wei Chang, 2022. "Development of a Partial Shipping Fees Pricing Model to Influence Consumers’ Purchase Intention under the COVID-19 Pandemic," Energies, MDPI, vol. 15(5), pages 1-16, March.
    9. Toptal, Ayşegül, 2012. "Integration of shipment scheduling decisions for forward and reverse channels in a recoverable item system," International Journal of Production Economics, Elsevier, vol. 140(1), pages 129-137.
    10. Dinçer Konur & Joseph Geunes, 2019. "Integrated districting, fleet composition, and inventory planning for a multi-retailer distribution system," Annals of Operations Research, Springer, vol. 273(1), pages 527-559, February.
    11. McDonald, Conor M., 2016. "Integrating packaging and supply chain decisions: Selection of economic handling unit quantities," International Journal of Production Economics, Elsevier, vol. 180(C), pages 208-221.
    12. Munson, C.L. & Hu, J., 2010. "Incorporating quantity discounts and their inventory impacts into the centralized purchasing decision," European Journal of Operational Research, Elsevier, vol. 201(2), pages 581-592, March.
    13. Taleizadeh, Ata Allah & Pentico, David W., 2014. "An Economic Order Quantity model with partial backordering and all-units discount," International Journal of Production Economics, Elsevier, vol. 155(C), pages 172-184.
    14. Sadia Samar Ali & Haripriya Barman & Rajbir Kaur & Hana Tomaskova & Sankar Kumar Roy, 2021. "Multi-Product Multi Echelon Measurements of Perishable Supply Chain: Fuzzy Non-Linear Programming Approach," Mathematics, MDPI, vol. 9(17), pages 1-27, August.
    15. Aria Shahsavar & Nima Zoraghi & Babak Abbasi, 2018. "Integration of resource investment problem with quantity discount problem in material ordering for minimizing resource costs of projects," Operational Research, Springer, vol. 18(2), pages 315-342, July.
    16. Toptal, Aysegül & Bingöl, Safa Onur, 2011. "Transportation pricing of a truckload carrier," European Journal of Operational Research, Elsevier, vol. 214(3), pages 559-567, November.
    17. Andrew Manikas & Michael Godfrey, 2018. "A Spreadsheet Approach For Incorporating Actual Motor Carrier Freight Rates And External Environmental Costs In A Newsvendor Model," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 11(1), pages 55-72.
    18. Konur, Dinçer & Toptal, Ayşegül, 2012. "Analysis and applications of replenishment problems under stepwise transportation costs and generalized wholesale prices," International Journal of Production Economics, Elsevier, vol. 140(1), pages 521-529.

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