Abstract
This paper considers the joint pricing and the lot-size determination problem faced by a retailer when he purchases a product for which the supplier offers incremental quantity discounts. Two common demand functions are considered: (1) the constant price-elasticity function, and (2) the linear function. A procedure is provided for each case for calculating the optimal price and the lot-size.
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Abad, P. Joint Price and Lot-Size Determination When Supplier Offers Incremental Quantity Discounts. J Oper Res Soc 39, 603–607 (1988). https://doi.org/10.1057/jors.1988.100
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DOI: https://doi.org/10.1057/jors.1988.100