The inventory models analyzed in this paper explore the problem in which the lead time and ordering cost reductions are inter-dependent in the continuous review inventory model with backorder price discount. The objective is to minimize total related cost by simultaneously optimizing the order quantity, reorder point, lead time and backorder price discount. Moreover, we assume that the mean and...

The purpose of this study is to investigate the impact of trade credit in the inventory system. It explores an inventory system with noninstantaneous replenishment under conditions of permissible delay in payments. In practice, the supplier allows a certain fixed credit period to settle the account for stimulating retailer’s demand. Besides, the supplier can offer cash discount to encourage ret...

This study examined the incidence and determinants of quantity price discounts and quantity price surcharges in the German food sector through a bivariate probit, using recent consumer scanner survey data. Selectivity bias was corrected for in estimating the degree of quantity price surcharge and quantity price discount, using Heckman’s procedure. The findings reveal that almost 10% of the inve...

In this paper, we concentrate on developing a bi-fuzzy multi objective transportation problem (MOSTP) according to bi-fuzzy expected value method (EVM). In a transportation model, the available discount is normally offered on items/criteria, etc., in the form all unit discount (AUD) or incremental quantity discount (IQD) or combination of these two. Here transportation model is considered with ...

The use of linear wholesale price contract has long been recognized as a threat to achieving channel effciency. Many formats of nonlinear pricing contract have been proposed to achieve vertical channel coordination. Examples include two-part tariff and quantity discount. A two-part tariff charges the downstream party a fixed fee for participation and a uniform unit price. A quantity discount co...

In this article, a finite horizon, multi product and multi period economic order quantity like seasonal items is considered where demand rate is deterministic and known but variable in each period. The order quantities of items come in batch sizes and the end of the period order quantity and, consequently, demand of customers are zero. In addition, storage space is constrained and the problem...

In this paper, we consider the coordination issue on a supply chain when the firm on this chain tries to produce new products. By considering the risk of new products, three contracts, constant wholesale price contract, revenue sharing contract and linear quantity discount policy, are investigated.