Newsboy models have wide applications in solving real-world inventory problems. This paper analyzes the optimal inventory policy for the single-order newsboy problem with fuzzy demand and quantity discounts. The availability of the quantity discount causes the analysis of the associated model to be more complex, and the proposed solution is based on the ranking of fuzzy numbers and optimization...

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...

This paper discusses an Economic Production Quantity model for Weibull deteriorating items over an infinite time horizon under fuzzy environment. Fuzziness is introduced by allowing the cost components such as setup cost, production cost, holding cost, shortage cost and opportunity cost due to lost sales to certain extent. Triangular fuzzy numbers are used to represent the mentioned costs. Opti...

This paper investigates an order allocation problem of a manufacturer/buyer among multiple suppliers under the risks of supply disruption. A mixed integer non-linear programming (MINLP) model is developed for order allocation considering different capacity, failure probability and quantity discounts for each supplier. We have shown that the formulated problem is NP-hard in nature and genetic al...

In a previous International Journal of Production Economics article, a comparative model was presented for inventory costs of purchasing under economic order quantity (EOQ) with quantity discounts and a just-in-time (JIT) order purchasing system. This paper expands the comparative model to include a relevant cost component not considered in the previous article. The results of the revised model...

Quantity discount is a frequently adopted scheme that has not been explicitly investigated in logistics service procurement auctions. This paper focuses on revised winner determination problem under quantity discounts and demand uncertainty for fourth-party (4PL) provider combinatorial reverse auction. To characterize our research problem, two-stage stochastic nonlinear programming model constr...

This article focuses on solving the order quantity allocation problem for retailers. It considers factors such as quality constraints, nonlinear discounts, and price-dependent demand. By formulating it a maximization problem, aims to find best combination of suppliers out infinite solutions maximize retailer’s profit. The main contribution this research is new mathematical model that can solve ...

A curious phenomenon in the retail pricing of many product categories (e.g., tuna, frozen orange juice, tomato paste) is the existence of quantity surcharges. A related curiosity is the existence of both discounts and surcharges within the same product category. To explain the former phenomenon, previous researchers invoke heterogeneity in consumption parameters (Gerstner and Hess 1987), hetero...