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The Newsboy Problem with Multiple Discounts Offered by Suppliers and Retailers
Author(s) -
Khouja Moutaz
Publication year - 1996
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.1540-5915.1996.tb00865.x
Subject(s) - newsvendor model , business , microeconomics , commerce , computer science , marketing , supply chain , economics
Recent extensions of the newsboy problem have focused on multiple discounts used by retailers to sell excess inventory. Earlier extensions have focused on quantity discounts offered by suppliers. An important practical extension would address a combination of the two previous extensions. In this paper, a newsboy problem with supplier quantity discounts and retailer multiple discounts is formulated and solved. The case of all‐units supplier quantity discounts is addressed, and the results with numerical examples are illustrated.