Note on supplier-restricted order quantity under temporary price discounts

Chu, Peter C.; Chen, Patrick S.; Niu, Thomas

doi:10.1007/s001860200272

Cited by 10 publications

(3 citation statements)

References 10 publications

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“…Such discounts were also studied in a stochastic environment (e.g. Abad 2003;Chu, Chen, and Niu 2003;Banerjee and Meitei 2010). Some studies in the literature have assumed that the amount of reduction in price per unit is a constant that is independent of the order quantity of any retailer and for which quantity discounts are not available (Ardalan 1988(Ardalan , 1994Ramasesh and Rachamadugu 2012).…”

Section: Introductionmentioning

confidence: 98%

Responding to supplier temporary price discounts in a supply chain through ordering and pricing decisions

Xia

2015

International Journal of Production Research

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This paper considers a one-retailer and one-supplier supply chain and addresses the question of how a retailer should use its ordering and pricing decisions to respond to its supplier's temporary price discounts. The paper considers a hybrid environment -somewhere between deterministic and stochastic modelling approaches -that is, the retailer does not know when the next promotion from its supplier will occur but, once the promotion is announced, all its details are deterministic and often there is some time remaining before the promotion actually starts. We include in the objective function penalties on deviations from the original plan and explore the properties of the retailer's ordering and pricing decisions under fixed and flexible set-up scenarios. We show that, when the set-up epochs are fixed, the retailer's order quantities are monotonic and non-decreasing in situations where retail prices can be either fixed or flexible. When the set-up epochs are flexible, the ordering cycle is identical. Finally, we use some numerical examples to illustrate the proposed approach.

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Section: Introductionmentioning

confidence: 98%

Responding to supplier temporary price discounts in a supply chain through ordering and pricing decisions

Xia

2015

International Journal of Production Research

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“…In a later work, Arcelus et al [33] present an inventory model and derive the buyer's profit maximizing promotion strategy when confronted with a supplier's trade promotion based on a discount in price or a delay in payment for regular and perishable products. Chu et al [34] prove that the minimum inventory level during a sale period is the optimal replenishment time for the supplier considering restrictions on the special order quantity. Finally, Sarker and Kindi [35,36] derive an EOQ-type inventory model with price discount to obtain the optimal ordering policies for a number of different scenarios.…”

Section: Introductionmentioning

confidence: 99%

Optimal order size to take advantage of a one-time discount offer with allowed backorders

Cárdenas–Barrón

Smith

Goyal

2010

Applied Mathematical Modelling

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a b s t r a c tIn this paper, we develop an inventory model for determining the optimal ordering policies for a buyer who operates an inventory policy based on an EOQ-type model with planned backorders when the supplier offers a temporary fixed-percentage discount and has specified a minimum quantity of additional units to purchase. A distinguishing feature of the model is that both fixed and linear backorder costs are included, whereas previous works include only the linear backordering cost. A numerical study is performed to provide insight into the behavior of the model.

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“…Sari et al [19] consider the inventory model with several discount offers and different discounts at different times. Chu et al [7] consider the inventory model in which the discounted purchased quantity can be selected from a restricted set of values. Sarker and Kindi [20] examine the inventory model with multiple types of one-interval discounts.…”

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confidence: 99%

Optimal ordering policy for inventory mechanism with a stochastic short-term price discount

Wang¹,

Xing²,

Gao³

2020

Journal of Industrial &Amp; Management Optimization

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This paper considers an inventory mechanism in which the supplier may provide a short-term price discount to the retailer at a future time with some uncertainty. To maximize the retailer's profit in this setting, we establish an optimal replenishment and stocking strategy model. Based on the retailer's inventory cost-benefit analysis, we present a closed-form solution for the inventory model and provide an optimal ordering policy to the retailer. Numerical experiments and numerical sensitivity are given to provide some high insights to the inventory model.

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Note on supplier-restricted order quantity under temporary price discounts

Cited by 10 publications

References 10 publications

Responding to supplier temporary price discounts in a supply chain through ordering and pricing decisions

Responding to supplier temporary price discounts in a supply chain through ordering and pricing decisions

Optimal order size to take advantage of a one-time discount offer with allowed backorders

Optimal ordering policy for inventory mechanism with a stochastic short-term price discount

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