Optimal Lot Sizing For Carload Discount Schedules
Samir Elhedhli
and
Ömer S. Benli
To appear in INFOR: Canadian Journal of Operational Research and
Information Processing, 2004.
In order to encourage customers to buy more of an item, suppliers often
offer discount schedules, most common ones being all-units and incremental
discounts. The carload discounts schedule is
one of the simplest schedules that are commonly used in practice. In this paper,
an optimal lot sizing procedure is developed for this model. It turns out that
the procedure is extremely simple, contrary to the expectations reported in the
literature.