Pricing Policies for Quantity Discounts

Maqbool Dada and K. N. Srikanth
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Maqbool Dada: College of Business Administration, University of Illinois at Chicago, Chicago, Illinois 60680
K. N. Srikanth: College of Business Administration, University of Illinois at Chicago, Chicago, Illinois 60680

Management Science, 1987, vol. 33, issue 10, 1247-1252

Abstract: In this paper we analyze the seller's decision to offer quantity discounts to the buyer. We build on an existing model as follows. We first characterize the range of order sizes and prices which reduce costs for the buyer and seller, and develop related pricing schemes. The model is then extended to allow inventory carrying costs to be a function of price.

Keywords: marketing: distribution; marketing: pricing; inventory/production-EOQ (search for similar items in EconPapers)
Date: 1987
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Citations: View citations in EconPapers (40)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:33:y:1987:i:10:p:1247-1252

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