Article ID: | iaor19951229 |
Country: | United Kingdom |
Volume: | 45 |
Issue: | 10 |
Start Page Number: | 1206 |
End Page Number: | 1210 |
Publication Date: | Oct 1994 |
Journal: | Journal of the Operational Research Society |
Authors: | Lu L., Qiu Y. |
Keywords: | quantity discount |
This paper derives the worst-case performance of a power-of-two policy in an all-unit quantity discount model with one price break point, which extends the sensitivity analysis for the classical EOQ model. It shows that the worst-case performance will depend on the discount rate