Replenishment decisions under an all-units discount schedule and stepwise freight costs

Aysegül Toptal

European Journal of Operational Research, 2009, vol. 198, issue 2, 504-510

Abstract: In this study, we analyze the replenishment decisions under a general replenishment cost structure that includes stepwise freight costs and all-units quantity discounts. We first formulate a general model that accounts for a larger class of problems and prove several useful properties of the expected profit function. We later utilize these properties to develop a computational solution approach to find the optimal order quantity. As an application of the general results, we study the replenishment decisions in the single-period, i.e., the Newsboy, problem considering several scenarios that model the cost considerations either for the buyer or for both the buyer and the vendor.

Keywords: All-units; discount; Transportation; Cargo; capacity; Newsboy; model/problem (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:198:y:2009:i:2:p:504-510

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