This paper develops a model for illustrating how to use quantity discount policy to achieve supply chain coordination. A supplier–buyer system selling one type of product with multi-period and probabilistic customer demand is considered. We first show that if both the buyer and supplier can find a coordination mechanism to make joint decisions, the joint profit in this situation is more than th...

Faical – maybe we should just focus this paper purely on the WTP estimates and the issue of the whether quantity discount strategies would be a warranted marketing strategy. So review the organic WTP studies and quantity discount literature – my guess is that no one has evaluated the issue of quantity discounts in organic food marketing. This will be the contribution of our study. No need to me...

In this paper we study the coordination of the two-echelon supply chain using credit and quantity discount options. We determine the retail price, order quantity for the buyer, and the setup frequency, credit period for the supplier in four different scenarios (with or without coordination and with or without credit option). And we suggest a policy that incorporates both quantity discount and c...

Previous ordering cost reduction vendor–buyer inventory models with backorder price discount usually assumed that the buyer must pay to the vendor for the ordered items as soon as the items are received, the received quantity is same as the ordered quantity and the transportation cost is independent of the shipment lot-size. In practice, however, the vendor is willing to offer the buyer a certa...

In this study, the effect of a temporary price discount for a larger order than the regular order offered by the supplier on the retailer’s ordering policy is studied. The demand is assumed to be stock-dependent. The units in inventory deteriorate at a constant rate. This study will help the retailer to take the decision whether to adopt a regular or special order policy. The optimum special qu...

This study considers a quantity discount problem between a single seller (poultry famer) and two buyers (retailers). The poultry farmer’s inventory level increases due to the increase in the weight of the fowls. The retailers purchase fresh chicken meat from the poultry farmer, the inventory levels of the retailers are therefore depleted due to the combined effects of its demand and deteriorati...

Selling organizations often offer quantity discounts schedules, but do not provide the underlying Quantity Discount Price Functions (QDPF). In literature an analysis on how QDPF could be derived from discount schedules is lacking. This is remarkable as QDPF contain useful information for buying organizations. QDPF give more insight into the fixed and variable costs of selling organizations and ...

We explore the issue of supply chain coordination by considering trade credit and its risk. It shows that, in a retailer–manufacturer system, the manufacturer may deliver less than the retailer's order quantity when the payment is delayed, and the manufacturer's risk aversion makes this result hold in a wider range. These findings are different from the common sense believed in the retailer–man...

    Supplier selection,   Multi-objective decision making,   Fuzzy Compromise programming,   Supply chain management,   Quantity discount .   Supplier selection is naturally a complex multi-objective problem including both quantitative and qualitative factors. This paper deals with this issue from a new view point. A quantity discount situation, which plays a role of motivator for buyer, is con...