Pricing Policies for Quantity Discounts
Management Science · 1987 · Volume 33 · Issue 10
Abstract
In this paper we analyze the seller's decision to offer quantity discounts to the buyer. We build on an existing model as follows. We first characterize the range of order sizes and prices which reduce costs for the buyer and seller, and develop related pricing schemes. The model is then extended to allow inventory carrying costs to be a function of price.
Keywords
marketing: distribution, marketing: pricing, inventory/production-EOQ
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