An Improved Procedure for Economic Order Quantity with all Unit Price Discounts

Gupta Omprakash K

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: Suppliers often offer price discounts for large purchases. These discounts are generally of two types: all unit discounts and incremental discounts. This paper presents an improved procedure for determining the economic order quantity under all unit discounting scheme. Upper bounds on the total relevant costs are obtained which are used to discard certain high-price ranges form consideration.

Date: 1987-05-01
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Persistent link: https://EconPapers.repec.org/RePEc:iim:iimawp:wp00753

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