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Note on supplier-restricted order quantity under temporary price discounts

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Abstract

In this technical note, we consider the optimal replenishment strategies for a continuous review inventory model in which temporary price discounts are offered subject to supplier-obligatory restrictions on the special order quantity. We prove that the minimum inventory level during the on-sale period is the optimal replenishment time for the supplier-restricted inventory model.

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Authors and Affiliations

  1. Dept. of Traffic Science, Central Police University, , , , , Taiwan

    Peter Chu

  2. Dept. of Information Management, Central Police University, , , , , Taiwan

    Patrick S. Chen

  3. Independent Researcher, Independent Researcher, , , , ,

    Thomas Niu

Authors
  1. Peter Chu
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  2. Patrick S. Chen
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  3. Thomas Niu
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Corresponding authors

Correspondence to Peter Chu, Patrick S. Chen or Thomas Niu.

Additional information

Manuscript received: April 2002/Final version received: November 2002

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Chu, P., Chen, P.S. & Niu, T. Note on supplier-restricted order quantity under temporary price discounts. Mathematical Methods of OR 58, 141–147 (2003). https://doi.org/10.1007/s001860200272

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  • DOI: https://doi.org/10.1007/s001860200272

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