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

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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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