Integrated vendor–buyers system with quantity-discount and identical replenishment cycle time policy
by Po Chung Yang, Hui Ming Wee
International Journal of Services Operations and Informatics (IJSOI), Vol. 1, No. 4, 2006

Abstract: Due to the ease in scheduling, it is common for a large-scale supply chain network to have identical replenishment cycle time. We address an optimal pricing and replenishing policy in a system for a single vendor and multiple buyers with identical replenishment cycle time. Since it benefits the vendor more than the buyers when a vendor and multiple buyers are integrated, a quantity-discount pricing strategy is incorporated to entice the buyers to order larger lot sizes so that the minimum total cost can be derived. Negotiation factor is used to balance the cost saving between the players. A numerical example is provided with sensitivity analysis to demonstrate the theory and the cost savings. The quantity-discount incentive is a win–win strategy between the vendor and the buyers.

Online publication date: Thu, 25-Jan-2007

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Services Operations and Informatics (IJSOI):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com