In this paper, we consider a class of single-item dynamic lot-sizing problem with quantity discount cost structure. We present an optimal polynomial algorithm for the case of multibreakpoint Ni, i = 1,2, . . . ,m. The complexity of our algorithm is O(n3 + mn2), where n is the number of periods in finite planning horizon.

Vendor selection decisions are complicated by the fact that various conflicting multi-objective factors must be considered in the decision making process. The problem of vendor selection becomes still more compli-cated with the inclusion of incremental discount pricing schedule. Such hard combinatorial problems when solved using meta heuristics produce near optimal solutions. This paper propose...

E the tension between theory and practice regarding complexity and performance in contract design is especially relevant. The goal of this paper is to understand why simpler contracts may commonly be preferred in practice despite being theoretically suboptimal. We study a two-tier supply chain with a single supplier and a single buyer to characterize the impact of contract complexity and asymme...

Purpose The authors investigate the manufacturer's choice of discount schemes in a supply chain with competing retailers. Design/methodology/approach Using game-theoretic model, build two frameworks and compare analyze effects different on performance members. Findings find that retail price (market demand) quantity scheme is always higher (lower) than market share scheme. also retailers' prefe...