Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
477221 | European Journal of Operational Research | 2009 | 7 Pages |
Abstract
In this study, we analyze the replenishment decisions under a general replenishment cost structure that includes stepwise freight costs and all-units quantity discounts. We first formulate a general model that accounts for a larger class of problems and prove several useful properties of the expected profit function. We later utilize these properties to develop a computational solution approach to find the optimal order quantity. As an application of the general results, we study the replenishment decisions in the single-period, i.e., the Newsboy, problem considering several scenarios that model the cost considerations either for the buyer or for both the buyer and the vendor.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Ayşegül Toptal,