Purpose – Studies on optimal discount levels have sometimes yielded contradictory results, leaving practitioners with unclear direction. This paper proposes clarifying the optimum discount levels. Design/methodology/approach – This study asked 453 consumers to choose their own optimal discount levels (from 0-80 percent) for eight product categories across two distribution channels (physical sto...

The combination of either boceprevir or telaprevir with ribavirin and interferon (triple therapy) has been shown to be more effective than ribavirin+interferon (dual therapy) for the treatment of genotype 1 hepatitis C. Since the benefit of these treatments takes place after years, simulation models are needed to predict long-term outcomes. In simulation models, the choice of different values o...

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...

This paper addresses the discount pricing in word-of-mouth (WOM) marketing. A new discount strategy known as the Infection-Based Discount (IBD) strategy is proposed. The basic idea of the IBD strategy lies in that each customer enjoys a discount that is linearly proportional to his/her influence in the WOM network. To evaluate the performance of the IBD strategy, the WOM spreading process is mo...

This paper, studies the coordination of two-echelon supply chains using a credit (delayed) payment option and/or a wholesale price discount offer. We develop models for optimizing individual members’, as well as supply chain’s objectives. These models lead to the determination of the retail price and the order quantity for the buyer, as well as the production batch size, wholesale discount and/...

In practices, the supplier may simultaneously offer the customer: (1) a permissible delay in payments to attract new customers and increase sales, and (2) a cash discount to motivate faster payment and reduce credit expenses. Since all cash outflows related to inventory control that occur at different points of time have different values, we use the discount cash-flow (or DCF) approach to esta...