This study examined the incidence and determinants of quantity price discounts and quantity price surcharges in the German food sector through a bivariate probit, using recent consumer scanner survey data. Selectivity bias was corrected for in estimating the degree of quantity price surcharge and quantity price discount, using Heckman’s procedure. The findings reveal that almost 10% of the inve...

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...

In this paper, we consider a supply chain which consists of a single manufacturer and a single retailer with a single product type. Demand is assumed to be dependent on the retailer's stock level. Without coordination, the retailer determines its order quantity to maximize its own profit, which is usually smaller than the manufacturer's economic production quantity. Three coordination policies ...

Multi-site organizations must balance conflicting forces to determine the appropriate degree of purchasing centralization for their respective supplies. The ability to garner quantity discounts represents one of the primary reasons that organizations centralize procurement. This paper provides methodologies to calculate optimal order quantities and compute total purchasing and inventory costs w...

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...

This paper studies a problem encountered by a buying office for one of the largest retail distributors in the world. An important task for the buying office is to plan the distribution of goods from Asia to various destinations across Europe. The goods are transported along shipping lanes by shipping companies, which offer different discount rates depending on the freight quantity. To increase ...

We consider in this paper an Economic Order Quantity (EOQ) problem involving a single supplier that offers quantity discounts and allows retailers to delay payments. The retailers are tempted to form coalitions in order to minimize their costs. We propose a solution approach that generates stable coalition structures for the retailers taking into account the delay in payments and the discount q...

This paper, studies the coordination of two-echelon supply chains using a credit (delayed) payment option and/or a wholesale price discount offer. We develop models for optimizing individual members’, as well as supply chain’s objectives. These models lead to the determination of the retail price and the order quantity for the buyer, as well as the production batch size, wholesale discount and/...

In practices, the supplier may simultaneously offer the customer: (1) a permissible delay in payments to attract new customers and increase sales, and (2) a cash discount to motivate faster payment and reduce credit expenses. Since all cash outflows related to inventory control that occur at different points of time have different values, we use the discount cash-flow (or DCF) approach to esta...