Evaluation of quantity discounts considering rate of return

Evaluation of quantity discounts considering rate of return

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Article ID: iaor1991414
Country: United States
Volume: 30
Start Page Number: 68
End Page Number: 71
Publication Date: Apr 1989
Journal: Production and Inventory Management Journal
Authors:
Abstract:

When a decision is made to purchase inventory which allows a quantity discount, extra inventory is carried. This decision can be viewed as an investment of available funds. A model and a computer program are given which will determine if the savings represents an acceptable rate of return on investment.

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