| 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.