Joint economic lot sizing (JELS) addresses integrated inventory models in a supply chain. Most of the studies in this field either do not consider the role of the transportation cost in their analysis or consider transportation cost as a fixed part of the ordering costs. In this article, a model is developed to analyze an incremental quantity discount in transportation cost. Appropriate equatio...

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...

Is the cost of living higher for the poor? Recent studies based on unit values (the ratio of expenditure to quantity) suggest that poor households pay substantially higher prices because liquidity constraints force them to purchase goods in small quantities and not realize bulk discounts. Unit values are subject to several biases and reflect economizing choices made by households, so they may n...

This paper investigates the coordination mechanism for a supply chain with one manufacturer and two competing retailers when the demands are disrupted. This differs from conventional supply chain coordination models under a static case. We will consider different scenarios of the problem: the production deviation cost may be either incurred to the manufacturer or to the retailers; the supply ch...

The classic Economic Order Quantity model assumes that the unit purchasing cost is not based on the order quantity. In practice, a supplier may offer purchasers an all-units discount. We develop a model and solution procedure for the EOQ with all-unit discounts and partial backordering at a constant rate. We show, and illustrate with a numerical example, how that model can be used to find the s...

In this paper, a discount model is proposed to coordinate pricing and ordering decisions in a two-echelon supply chain (SC). Demand is stochastic and price sensitive while lead times are fixed. Decentralized decision making where downstream decides on selling price and order size is investigated. Then, joint pricing and ordering decisions are extracted where both members act as a single entity ...

Answers how much to order when to order. Reduced price when item is purchased in larger quantities.The first model we will present is called the economic order quantity EOQ. We will discuss two types of quantity discount contracts: all units discounts and.buy the lowest total cost quantity, save the buyer money and, in some cases, receive more goods. quantity discount model example When we buy ...

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...