Article ID: | iaor20032645 |
Country: | Netherlands |
Volume: | 83 |
Issue: | 3 |
Start Page Number: | 247 |
End Page Number: | 256 |
Publication Date: | Jan 2003 |
Journal: | International Journal of Production Economics |
Authors: | Papachristos S., Skouri K. |
Keywords: | discounts |
Wee, in his paper in 1999 presented a deterministic inventory model with the following characteristics. Quantity discount schemes for the unit cost, partial backlogging at a fixed rate, deterioration of stock in time and demand rate being a linear function of the selling price. In this article we generalize the work of Wee. More specifically, we consider a model where the demand rate is a convex decreasing function of the selling price and the backlogging rate is a time-dependent function, which ensures that the rate of backlogged demand increases as the waiting time to the following replenishment point decreases.