Abstract
Due to the ease in scheduling, it is common for a large-scale supply chain network to have identical replenishment cycle time. We address an optimal pricing and replenishing policy in a system for a single vendor and multiple buyers with identical replenishment cycle time. Since it benefits the vendor more than the buyers when a vendor and multiple buyers are integrated, a quantity-discount pricing strategy is incorporated to entice the buyers to order larger lot sizes so that the minimum total cost can be derived. Negotiation factor is used to balance the cost saving between the players. A numerical example is provided with sensitivity analysis to demonstrate the theory and the cost savings. The quantity-discount incentive is a win–win strategy between the vendor and the buyers.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: International Journal of Services Operations and Informatics
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.