DISCOUNTING DECISIONS IN A SUPPLIER-BUYER RELATIONSHIP WITH A LINEAR BUYER'S DEMAND
作者:
MAHMUT PARLAR,
QINAN WANG,
期刊:
IIE Transactions
(Taylor Available online 1994)
卷期:
Volume 26,
issue 2
页码: 34-41
ISSN:0740-817X
年代: 1994
DOI:10.1080/07408179408966594
出版商: Taylor & Francis Group
数据来源: Taylor
摘要:
In this paper, we analyze discounting decisions for a supplier with a group of homogeneous customers. We focus on two aspects: the gaming nature of the discount problem and the demand consideration in the process. We use a general quantity discount schedule and start with the Stackelberg equilibrium of the problem. It is shown that, for the seller to gain from quantity discount, he has to set up his quantity discount schedule such that the buyer will order more than his EOQ. Both the seller and the buyer can gain significantly from quantity discount. The incentive for discount is twofold: reducing inventory related cost and attracting more demand from the customers. In addition, quantity discount schedule can be very efficient in obtaining the maximum gain the seller and the buyer can possibly obtain together.
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