Discount pricing for a family of items: The supplier's optimal decisions

► We defined and determined the optimal discount scheme that a supplier should offer. ► Item family managed by modified periodic policy; discount on total group purchases. ► We considered the cases of constant demand rate and demand that is price sensitive. ► Two models: noncooperative Stackelberg game, or joint discount/ordering decisions. ► Joint model gave higher payoff to both supplier and buyer.