Article ID: | iaor198855 |
Country: | United States |
Volume: | 34 |
Issue: | 11 |
Start Page Number: | 1391 |
End Page Number: | 1400 |
Publication Date: | Nov 1988 |
Journal: | Management Science |
Authors: | Joglekar Prafulla N. |
Keywords: | production, marketing |
Monahan adapted the quantity discount model of inventory theory to the problem of determining an optimal quantity discount schedule from a vendor’s point of view, and opened up an important direction of research. However, his one-term, one-customer, one-vendor model is based on several implicit assumptions that must be judged unreasonable. Monahan must account for the vendor’s inventory carrying charges and redefine his variable