Coordinated Lot-sizing and Dynamic Prizing under a Supplier All-units Quantity Discount
We consider an economic order quantity model where the supplier offers an all-units quantity discount and a price sensitive customer demand. We compare a decentralized decision framework where selling price and replenishment policy are determined independently to simultaneous decision making. Constant and dynamic pricing are distinguished. We derive structural properties and develop algorithms that determine the optimal pricing and replenishment policy and show how quantity discounts not only influence the purchasing strategy but also the pricing policy. A sensitivity analysis indicates the impact of the fixed-holding cost ratio, the discount policy, and the customers' price sensitivity on the optimal decisions.
Volume (Year): 1 (2008)
Issue (Month): 1 (May)
|Contact details of provider:|| Web page: http://www.vhbonline.org|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:vhb:journl:v:1:y:2008:i:1:p:125-141. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tina Osteneck)
If references are entirely missing, you can add them using this form.