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The single period problem with price discount and probabilistic initial inventory

Haji, R ; Sharif University of Technology | 2006

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  1. Type of Document: Article
  2. Publisher: 2006
  3. Abstract:
  4. In this paper we consider a newsvendor problem in which the suppliers offer quantity discounts. We assume that the initial inventory at the beginning of the period is a random variable. This assumption, among other applications, may apply to the case where the decision about the order quantity must be made at a time long before the start of the period and the available inventory may decrease due to several factors, such as deterioration, consumption, etc. up to the start of the period. In this paper, we obtain the optimal order quantity that maximizes the total profit for this model
  5. Keywords:
  6. Cost benefit analysis ; Mathematical models ; Probabilistic logics ; Problem solving ; Random processes ; Inventory management ; Newsvendors ; Quantity discounts ; Inventory control
  7. Source: 2006 IIE Annual Conference and Exposition, Orlando, FL, 20 May 2006 through 24 May 2006 ; 2006