Optimal ordering policies in response to a discount offer: Corrections

Recently, Sarker and Kindi [2006a. Optimal ordering policies in response to a discount offer. International Journal of Production Economics 100 (2), 195-211] developed an inventory model from the buyer's perspective, to determine the optimal ordering policies in response to a discount offer settled by the vendor for five possible cases. In the paper, there are some technical errors in developing the optimal ordering policies in Cases 1, 2, 4 and 5. In addition, some errors in mathematical expressions have been noted in the paper. At first, this paper presents the correct derivation of the optimal ordering policies for those cases, the correct mathematical expressions and the appropriate solution to the numerical examples. This study also derives the closed forms for the optimal total gain costs for each case that were not given by Sarker and Kindi [2006a. Optimal ordering policies in response to a discount offer. International Journal of Production Economics 100 (2), 195-211].