The dynamic lot size model with quantity discount

Awi Federgruen and Chung‐Yee Lee

Naval Research Logistics (NRL), 1990, vol. 37, issue 5, 707-713

Abstract: This article treats the dynamic lot size model with quantity discount in purchase price. We study the problem with two different cost structures: the all‐units‐discount cost structure and the incremental‐discount cost structure. We solve the problem under both discount cost structures by dynamic programming algorithms of complexity O(T3) and O(T2),respectively, with T the number of periods in the planning horizon.

Date: 1990
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Citations: View citations in EconPapers (12)

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https://doi.org/10.1002/1520-6750(199010)37:53.0.CO;2-5

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Persistent link: https://EconPapers.repec.org/RePEc:wly:navres:v:37:y:1990:i:5:p:707-713

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