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A Note on Determining Optimal Selling Price and Lot Size Under All‐Unit Quantity Discounts
Author(s) -
Burwell Timothy H.,
Dave Dinesh S.,
Fitzpatrick Kathy E.,
Roy Melvin R.
Publication year - 1990
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1990.tb01698.x
Subject(s) - unit (ring theory) , computer science , mathematical optimization , unit price , operations research , microeconomics , economics , mathematics , mathematics education
A recent study conducted by Abad [1] described a method of determining the optimal price and lot size when the supplier offers all‐unit quantity discounts. The author developed a procedure using centralized and decentralized approaches. According to the author's suggestion, further study is necessary to determine if the decentralized approach always provides an optimal solution. In the present study, an attempt is made to investigate the uniformity between the centralized and decentralized approaches and to verify whether the decentralized approach always yields optimal solutions.