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Replenishment decisions under an all-units discount schedule and stepwise freight costs

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  • Toptal, Aysegül

Abstract

In this study, we analyze the replenishment decisions under a general replenishment cost structure that includes stepwise freight costs and all-units quantity discounts. We first formulate a general model that accounts for a larger class of problems and prove several useful properties of the expected profit function. We later utilize these properties to develop a computational solution approach to find the optimal order quantity. As an application of the general results, we study the replenishment decisions in the single-period, i.e., the Newsboy, problem considering several scenarios that model the cost considerations either for the buyer or for both the buyer and the vendor.

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  • Toptal, Aysegül, 2009. "Replenishment decisions under an all-units discount schedule and stepwise freight costs," European Journal of Operational Research, Elsevier, vol. 198(2), pages 504-510, October.
    • Handle: RePEc:eee:ejores:v:198:y:2009:i:2:p:504-510
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    Cited by:

    1. Liqing Zhang & Sıla Çetinkaya, 2017. "Stochastic Dynamic Inventory Problem Under Explicit Inbound Transportation Cost and Capacity," Operations Research, INFORMS, vol. 65(5), pages 1267-1274, October.
    2. Tsao, Yu-Chung & Lu, Jye-Chyi, 2012. "A supply chain network design considering transportation cost discounts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 401-414.
    3. Ke, Ginger Y. & Bookbinder, James H., 2018. "Coordinating the discount policies for retailer, wholesaler, and less-than-truckload carrier under price-sensitive demand: A tri-level optimization approach," International Journal of Production Economics, Elsevier, vol. 196(C), pages 82-100.
    4. Schaefer, Brian & Konur, Dinçer, 2015. "Economic and environmental considerations in a continuous review inventory control system with integrated transportation decisions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 142-165.
    5. Chang, Hung-Chi, 2013. "A note on an economic lot size model for price-dependent demand under quantity and freight discounts," International Journal of Production Economics, Elsevier, vol. 144(1), pages 175-179.
    6. Engebrethsen, Erna & Dauzère-Pérès, Stéphane, 2019. "Transportation mode selection in inventory models: A literature review," European Journal of Operational Research, Elsevier, vol. 279(1), pages 1-25.
    7. Wang, Huihui & Yu, Yimin & Zhang, Wei & Hua, Zhongsheng, 2019. "Procurement strategies for lost-sales inventory systems with all-units discounts," European Journal of Operational Research, Elsevier, vol. 272(2), pages 539-548.
    8. Toptal, Ayşegül, 2012. "Integration of shipment scheduling decisions for forward and reverse channels in a recoverable item system," International Journal of Production Economics, Elsevier, vol. 140(1), pages 129-137.
    9. Dinçer Konur & Joseph Geunes, 2019. "Integrated districting, fleet composition, and inventory planning for a multi-retailer distribution system," Annals of Operations Research, Springer, vol. 273(1), pages 527-559, February.
    10. Toptal, Aysegül & Bingöl, Safa Onur, 2011. "Transportation pricing of a truckload carrier," European Journal of Operational Research, Elsevier, vol. 214(3), pages 559-567, November.
    11. Konur, Dinçer & Toptal, Ayşegül, 2012. "Analysis and applications of replenishment problems under stepwise transportation costs and generalized wholesale prices," International Journal of Production Economics, Elsevier, vol. 140(1), pages 521-529.
    12. Gunasekaran, Angappa & Ngai, Eric W.T., 2012. "The future of operations management: An outlook and analysis," International Journal of Production Economics, Elsevier, vol. 135(2), pages 687-701.
    13. Konur, Dinçer, 2014. "Carbon constrained integrated inventory control and truckload transportation with heterogeneous freight trucks," International Journal of Production Economics, Elsevier, vol. 153(C), pages 268-279.

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