The dynamic lot size model with quantity discount: Counterexamples and correction

The dynamic lot size model with quantity discount: Counterexamples and correction

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Article ID: iaor199975
Country: United States
Volume: 45
Issue: 4
Start Page Number: 419
End Page Number: 422
Publication Date: Jun 1998
Journal: Naval Research Logistics
Authors: ,
Keywords: discounts
Abstract:

Federgruen and Lee proposed an optimal algorithm for the single-item dynamic lot size model with all-unit discount. In this note we show that their algorithm fails to find the optimal solution for some special cases. We also provide a modification to the algorithm to handle them.

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