T newsvendor model is designed to decide how much of a product to order when the product is to be sold over a short selling season with stochastic demand and there are no additional opportunities to replenish inventory. There are many practical situations that reasonably conform to those assumptions, but the traditional newsvendor model also assumes a fixed salvage value: all inventory left ove...

In contrast to the classical newsboy-style problem, this paper develops a model for the multiple-item budget-constraint newsboy problem considering a reservation policy to meet marketing needs. A discount rate is provided to those customers who are willing to make a reservation. In addition to the demand from the original customers, extra demand is also included in the model due to the motivati...

Combining different product types into standard discount bundles is a common strategy used by producers and wholesalers to increase overall sales profitability. While markets consist of many producers and retailers, a deal is typically made between a single producer and a single retailer. This paper deals with a producer who sells items separately, and considers setting and selling standard dis...

This paper considered a single-item, three-echelon (supplier, retailer, and customer) inventory problem. At random times, the supplier offers the retailer a discount. The inter-arrival times of discounts are exponentially distributed. For the retailer, whether or not to take a discount offer depends on its inventory level. If inventory is below threshold level S, the retailer will order to repl...

An all-units discount is a price reduction applied to all units purchased if the customer’s total purchases equal or exceed a given quantity threshold. Since the discount is paid on all units rather than marginal units, the tariff is discontinuous and exhibits a negative marginal price (“cliff”) at the threshold that triggers the discount. This paper shows that all-units discounts arise in opti...

A real economic growth only comes from increasing quality and quantity of the factors of production. Most production systems produce items which are of imperfect quality. In a production/inventory situation items which are received or produced are not of perfect quality. Thus the presence of defects which is inevitable in a produced/ordered lot is sorted out by the process of screening. Handlin...

We estimate the slope of the demand curve for newly auctioned FHLB discount notes and investigate the impacts of arbitrage risk and heterogeneity of investor beliefs on demand elasticity. Our unique dataset of roughly 2,900 observations of two price-quantity pairs—the first from a pre-auction dealer survey, the second from actual auction results—provides the quantity shift necessary to identify...

In this paper, a nearly real-world multi-product, multi-period inventory control problem under budget constraint is investigated, where shortages in combination with backorders and lost sales are considered for each product. The ordered quantities of products are delivered in batch sizes with a known number of boxes, each containing a pre-specified number of products. Some products are purchase...

In this research we develop mathematical models of Joint Economic Lot-sizing Problem (JELP) in a situation when a supplier offers time-based temporary price discounts to a buyer during a sale period. To respond this, the buyer places a special order with higher quantity. In literature, it has been assumed that the buyer tends to place the special order at the end of the sale period. We relax th...