Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103667
Authors: 
Transchel, Sandra
Minner, Stefan
Year of Publication: 
2008
Citation: 
[Journal:] BuR - Business Research [ISSN:] 1866-8658 [Volume:] 1 [Year:] 2008 [Issue:] 1 [Pages:] 125-141
Abstract: 
We consider an economic order quantity model where the supplier offers an all-units quantity discount and a price sensitive customer demand. We compare a decentralized decision framework where selling price and replenishment policy are determined independently to simultaneous decision making. Constant and dynamic pricing are distinguished. We derive structural properties and develop algorithms that determine the optimal pricing and replenishment policy and show how quantity discounts not only influence the purchasing strategy but also the pricing policy. A sensitivity analysis indicates the impact of the fixed-holding cost ratio, the discount policy, and the customers' price sensitivity on the optimal decisions.
Subjects: 
dynamic pricing
economic order quantity
quantity-discount
procurement-inventory policies
marketing-operations interface
Persistent Identifier of the first edition: 
Document Type: 
Article

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