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Optimal order quantities with volume discounts before and after price increase

By M.M. Ali, L.C. Masinga and T. Jekot


An inventory problem in which annual demand is normally distributed with known means and standard deviations is considered. A purchase price increase is imminent before the next order is placed. Volume discounts are also given in accordance to the size of the order. A model to compute an optimal order quantity and an optimal delivery point is presented. This model can also account for any price change that may occur from time to time

Topics: Food and Drink, Retail
Year: 2004
OAI identifier:

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