The newsboy problem with multiple discounts offered by suppliers and retailers

The newsboy problem with multiple discounts offered by suppliers and retailers

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Article ID: iaor20012661
Country: United States
Volume: 27
Issue: 3
Start Page Number: 589
End Page Number: 599
Publication Date: Jun 1996
Journal: Decision Sciences
Authors:
Keywords: newsboy problem, discounts
Abstract:

Recent extensions of the newsboy problem have focused on multiple discounts used by retailers to sell excess inventory. Earlier extensions have focused on quantity discounts offered by suppliers. An important practical extension would address a combination of the two previous extensions. In this paper, a newsboy problem with supplier quantity discounts and retailer multiple discounts is formulated and solved. The case of all-units supplier quantity discounts is addressed and the results with numerical examples are illustrated.

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