| Article ID: | iaor20073195 |
| Country: | Canada |
| Volume: | 43 |
| Issue: | 4 |
| Start Page Number: | 361 |
| End Page Number: | 371 |
| Publication Date: | Nov 2005 |
| Journal: | INFOR |
| Authors: | Benli mer S., Elhedhli Samir |
| Keywords: | optimization |
In order to encourage customers to buy more of an item, suppliers often offer discount schedules, most common ones being all-units and incremental discounts. The carload discounts schedule is one of the simplest schedules that are commonly used in practice. In this paper, an optimal lot sizing procedure is developed for this model. It turns out that the procedure is extremely simple.