IDEAS home Printed from https://ideas.repec.org/a/now/fnttom/0200000041.html
   My bibliography  Save this article

Quantity Discounts: An Overview and Practical Guide for Buyers and Sellers

Author

Listed:
  • Munson, Charles L.
  • Jackson, Jonathan

Abstract

Sellers commonly provide price discounts for large orders; in fact, quantity discounts have existed as ubiquitous tools of commerce for hundreds of years. In some industries today, quantity discounts are more common than not in business-to-business transactions. For example, large discount retailers demand price breaks from their suppliers, and they typically then pass on a portion of the savings to final consumers. Practitioners face the issue from two sides. For sellers, what form of quantity discounts makes the most sense, and how should the discounts be priced? What role should quantity discounts play in the larger contract negotiation scheme? For buyers, how many units should be ordered when faced with a quantity discount schedule? And under what conditions should a buyer take the lead and attempt to negotiate a discount schedule from its supplier?

Suggested Citation

  • Munson, Charles L. & Jackson, Jonathan, 2015. "Quantity Discounts: An Overview and Practical Guide for Buyers and Sellers," Foundations and Trends(R) in Technology, Information and Operations Management, now publishers, vol. 8(1-2), pages 1-130, June.
    • Handle: RePEc:now:fnttom:0200000041
    DOI: 10.1561/0200000041
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1561/0200000041
    Download Restriction: no
    File URL: https://libkey.io/10.1561/0200000041?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jose A. García-Martínez & Ana Meca & G. Alexander Vergara, 2022. "Cooperative Purchasing with General Discount: A Game Theoretical Approach," Mathematics, MDPI, vol. 10(22), pages 1-20, November.
    2. Kirschstein, Thomas & Meisel, Frank, 2019. "A multi-period multi-commodity lot-sizing problem with supplier selection, storage selection and discounts for the process industry," European Journal of Operational Research, Elsevier, vol. 279(2), pages 393-406.
    3. Manerba, Daniele & Mansini, Renata & Perboli, Guido, 2018. "The Capacitated Supplier Selection problem with Total Quantity Discount policy and Activation Costs under uncertainty," International Journal of Production Economics, Elsevier, vol. 198(C), pages 119-132.
    4. Aria Shahsavar & Nima Zoraghi & Babak Abbasi, 2018. "Integration of resource investment problem with quantity discount problem in material ordering for minimizing resource costs of projects," Operational Research, Springer, vol. 18(2), pages 315-342, July.
    5. Song, Zhuzhu & Tang, Wansheng & Zhao, Ruiqing, 2019. "Encroachment and canvassing strategy in a sea-cargo service chain with empty container repositioning," European Journal of Operational Research, Elsevier, vol. 276(1), pages 175-186.

    More about this item

    Keywords

    Quantity discounts; Pricing;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:now:fnttom:0200000041. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lucy Wiseman (email available below). General contact details of provider: http://www.nowpublishers.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.