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A Study on a Multi-period Inventory Model with Quantity Discounts Based on the Previous Order

  • Sungmook Lim
Part of the Smart Innovation, Systems and Technologies book series (SIST, volume 10)

Abstract

Lee [Lee J-Y (2008). Quantity discounts based on the previous order in a two-period inventory model with demand uncertainty. Journal of Operational Research Society 59: 1004-1011] previously examined quantity discount contracts between a manufacturer and a retailer in a stochastic, two-period inventory model in which quantity discounts are provided on the basis of the previous order size. In this paper, we extend the above two-period model to a k-period one (where k > 2) and propose a stochastic nonlinear mixed binary integer program for it. With the k-period model developed herein, we suggest a solution procedure of receding horizon control style to solve n-period (n > k) order decision problems.

Keywords

Inventory Model Order Quantity Demand Uncertainty Economic Order Quantity Quantity Discount 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2011

Authors and Affiliations

  • Sungmook Lim
    • 1
  1. 1.Dept. of Business AdministrationKorea UniversityChungnamRepublic of Korea

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