In contrast to the existing literature on repeated games that assumes a Þxed discount factor, I study an environment in which it is more realistic to assume a ßuctuating discount factor. In a repeated oligopoly, as the interest rate changes, so too does the degree to which Þrms discount the future. I characterize the optimal tacit collusion equilibrium when the discount factor changes over time...

We discuss a quantity discount problem between a seller (wholesaler) and a buyer (retailer). The seller purchases products from an upper-leveled supplier (manufacturer) and then sells them to the buyer who faces her/his customers’ demand. The seller attempts to increase her/his profit by controlling the buyer’s order quantity through a quantity discount strategy and the buyer tries to maximize ...

Dynamic lot sizing problem is one of the significant problem in industrial units and it has been considered by many researchers. Considering the quantity discount in purchasing cost is one of the important and practical assumptions in the field of inventory control models and it has been less focused in terms of stochastic version of dynamic lot sizing problem. In this paper, stochastic dynamic...

Traditionally, supplier selection should simultaneously take into account numerous heterogeneous criteria, and then is a tedious task for the purchasing decision makers. It becomes especially complicated when quantity discounts are considered at the same time. Under such manner, most studies often formulate such a problem as a Multi-Objective Linear Programming (MOLP) problem, and then scale it...

Certain inventory items are living organisms, for example livestock, and are therefore capable of growing during the replenishment cycle. These items often serve as various saleable food items downstream in supply chains. The purpose of this paper is to develop a lot sizing model for growing items if the supplier of the items offers incremental quantity discounts. A mathematical model is derive...

Because transportation services provided by container lines to forwarders cannot be stored, they can be considered to be newsvendor-type products. This paper discusses a method used to optimize container lines’ freight tariffs in order to maximize their expected profit by considering changes in order quantities made by forwarders responding to the price schemes suggested by the container lines....

In the supply-chain literature, an increasing body of work studies how suppliers can use incentive schemes such as quantity discounts to influence buyers’ ordering behaviour, thus reducing the supplier’s (and the total supply chain’s) costs. Various functional forms for such incentive schemes have been proposed, but a critical assumption always made is that the supplier has full information abo...

Consider a distribution system consisting of a set of retailers facing a single-period price-dependent demand of a single product. By taking advantage of the risk-pooling effect and the quantity/volume discount provided by suppliers or thirdparty carriers, the retailers may place joint orders and keep inventory at central warehouses before demand realization, and allocate inventory among themse...

Supply chains are often in an environment where the demand is affected by the retailer’s sales effort and the supplier has no accurate information about the retailer’s cost. In this situation, the retailer’s action of distorting his cost information could damage the efficiency of the supply chain. In order to reduce the resulted impairment, the problem of how to coordinate the retailer’s action...