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Standard Container Size Discounts and the Single‐Period Inventory Problem *
Author(s) -
Pantumsinchai Pricha,
Knowles Thomas W.
Publication year - 1991
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.1540-5915.1991.tb01284.x
Subject(s) - container (type theory) , order (exchange) , computer science , mathematical optimization , range (aeronautics) , operations research , inventory management , mathematics , operations management , economics , mechanical engineering , finance , engineering , composite material , materials science
This paper analyzes the problem of choosing the optimal order quantity and its associated number of standard containers making up the order for single‐period inventory models under standard container size discounts. A range is determined that contains the optimal order quantity. Two algorithms are presented. The first algorithm solves the general case in which there is no restriction on the types of containers included in an order. The second algorithm solves a more restricted policy that requires the buyer to accept the order with successively smaller container sizes.