Abstract

In this paper, the problem of designing an optimal quantity-discount schedule is analyzed from the perspective of the supplier. All-unit discount system and single price break point are assumed. We investigate the cases where both the discount rate and the price break point are unknown and either one of them is prescribed. An algorithm is developed which maximizes the supplier's economic gain with no additional cost to the customers. To illustrate the algorithm, a numerical example is solved.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

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.