A Quantity Discount Pricing Model to Increase Vendor Profits

Monahan, James P.

doi:10.1287/mnsc.30.6.720

Cited by 531 publications

(204 citation statements)

References 4 publications

Supporting

Mentioning

202

Contrasting

Order By: Relevance

“…A supplier naturally wishes the opposite-he would like to see the retailer buy the material in advance and keep a large inventory to meet the fluctuations in external demand. One of the traditional tools that suppliers have employed to entice retailers in this direction is to offer quantity discounts (Monahan 1984).…”

Section: Literature Reviewmentioning

confidence: 99%

Retailer-Supplier Flexible Commitments Contracts: A Robust Optimization Approach

Ben‐Tal

Golany

Nemirovski

et al. 2005

M&SOM

295

207

View full text Add to dashboard Cite

W e propose the use of robust optimization (RO) as a powerful methodology for multiperiod stochastic operations management problems. In particular, we study a two-echelon multiperiod supply chain problem, known as the retailer-supplier flexible commitment (RSFC) problem with uncertain demand that is only known to reside in some uncertainty set. We adopt a min-max criterion, whereby the cost function is minimized against the worst case demand occurrence. To solve the min-max RSFC problem we employ a recent extension of the RO method adapted to dynamic decision problems and known as the affinely adjustable robust counterpart (AARC) methodology. The AARC solution is tested by a large simulation study and found to provide excellent results.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Retailer-Supplier Flexible Commitments Contracts: A Robust Optimization Approach

Ben‐Tal

Golany

Nemirovski

et al. 2005

M&SOM

295

207

View full text Add to dashboard Cite

show abstract

“…Considering the quantity discount of direct material, this paper divided the material purchase discount pricing into high, medium and low degree levels [70,71]. This study used three segments of piecewise linear function, as shown in Figure 5.…”

Section: Sensitivity Analysis Of the Quantity Discount Of Direct Matementioning

confidence: 99%

Green Production Planning and Control for the Textile Industry by Using Mathematical Programming and Industry 4.0 Techniques

Tsai

2018

Energies

View full text Add to dashboard Cite

Abstract:The textile industry is one of the world's major sources of industrial pollution, and related environmental issues are becoming an ever greater concern. This paper considers the environmental issues of carbon emissions, energy recycling, and waste reuse, and uses a mathematical programming model with Activity-Based Costing (ABC) and the Theory of Constraints (TOC) to achieve profit maximization. This paper discusses the combination of mathematical programming and Industry 4.0 techniques to achieve the purpose of green production planning and control for the textile industry in the new era. The mathematical programming model is used to determine the optimal product mix under various production constraints, while Industry 4.0 techniques are used to control the production progress to achieve the planning targets. With the help of an Industry 4.0 real-time sensor and detection system, it can achieve the purposes of recycling waste, reducing carbon emission, saving energy and cost, and finally achieving a maximization of profit. The main contributions of this research are using mathematical programming approach to formulate the decision model with ABC cost data and TOC constraints for the textile companies and clarifying the relation between mathematical programming models and Industry 4.0 techniques. Managers in the textile companies can apply this decision model to achieve the optimal product-mix under various constraints and to evaluate the effect on profit of carbon emissions, energy recycling, waste reuse, and material quantity discount.

show abstract

“…This model has received substantial attention in the literature, and assumes a number of different forms. In particular, Monahan (1984) has referred to a setting with a single purchaser that meets demand for a single product occurring at a constant rate, while ordering the product from a vendor who operates in the lot-for-lot fashion. In this setting, the vendor's quantity discounts were used as the means of coordination.…”

Section: Introductionmentioning

confidence: 99%

A vendor–purchaser economic lot size problem with remanufacturing

et al. 2014

View full text Add to dashboard Cite

In this paper, we study a closed-loop supply chain in which a single purchaser orders a particular product from a single vendor and sells it on the market. A certain fraction of used items return from the market back to the purchaser, who is responsible for collecting and returning them to the vendor. In addition to manufacturing new items, the vendor is able to remanufacture the returns into as-good-as-new items which are subsequently used to serve market demand. Our framework features the conventional joint economic lot size (JELS) model extended to include the return flow of the used items. In line with the assumptions of the JELS model, we assume a deterministic constant demand for the product. The fraction of used items returning from the market is assumed to depend on the purchaser's collection effort. To stimulate the returns, the vendor may offer the purchaser a transfer payment per item returned. The questions addressed by this study pertain to the optimal centralised control of this closed-loop supply chain, to the individually optimal policies of its members, and to the coordination within this supply chain under a decentralised control. In particular, we show that the transfer payment alone cannot coordinate the supply chain under consideration and may even fail to do so when combined with a two-part tariff -which is otherwise known to coordinate the corresponding forward supply chain. Our numerical study, though, has revealed that the combined contract is capable of substantially reducing the coordination deficit. We also introduce a novel three-part tariff which is shown to enable supply chain coordination in combination with the transfer payment.

show abstract

A Quantity Discount Pricing Model to Increase Vendor Profits

Cited by 531 publications

References 4 publications

Retailer-Supplier Flexible Commitments Contracts: A Robust Optimization Approach

Retailer-Supplier Flexible Commitments Contracts: A Robust Optimization Approach

Green Production Planning and Control for the Textile Industry by Using Mathematical Programming and Industry 4.0 Techniques

A vendor–purchaser economic lot size problem with remanufacturing

Contact Info

Product

Resources

About