Is price-quantity discount dead in a just-in-time environment?

Is price-quantity discount dead in a just-in-time environment?

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Article ID: iaor1996739
Country: United Kingdom
Volume: 15
Start Page Number: 261
End Page Number: 270
Publication Date: Sep 1995
Journal: International Journal of Operations & Production Management
Authors: ,
Keywords: production: FMS
Abstract:

Companies have traditionally relied on taking advantage of price-quantity discount (PQD) on large purchases. With the adoption of just-in-time (JIT) philosophy companies are encouraged to purchase materials in small lots to synchronize production with deliveries. This raised a question whether PDQ is applicable in a JIT purchasing environment. Argues that though seemingly inconsistent, JIT and PQD can coexist. Develops an integrated JIT-PQD model to allow a buyer to decide how much to purchase and how many shipments be placed per order.

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