Understanding the Quantity Discount Model There are different ways that businesses can structure quantity discount models. The most common is to offer a tiered discount, where the more units a customer buys, the
Quantity discount example click to zoom By giving discounts on bigger orders, they motivate customers to purchase more, which not only increases total sales but also helps cut down on the expenses of storing too much stuff. The role of quantity discounts in e-commerce Quantity discounts are cruc...
The obtained results show that rejecting discount by two retailers is Nash equilibrium in the former case. Finally, applicability of the proposed models is shown by solving a real numerical example.doi:10.1080/17509653.2011.10671188Hamidreza Navidi...
ExampleA retail store dealing in computer hardware imports an enterprise model solid-state drive (SSD) at a fixed price of $1000 per unit from the sole distributer of the SSD. On January 1, 2014, the store received an offer of 15% discount on orders of 300 or more units. Provided ...
Reconsiderthejuicerexamplewhere: H=.14,C O =12,D=6240/yr Supposethefollowingall-unitdiscount pricingplanapplies: QuantityUnit OrderedCost <300$10.00 300-600$9.75 600-1000$9.50 1000-5000$9.40 ≥5000$9.00 PIECEWISEAPPROACHPIECEWISEAPPROACH •ConsidereachquantitydiscountforC i asifit werevalideverywhere...
The scenarios are illustrated through a numerical example.doi:10.1057/palgrave.jors.2601676Shi, C-SSu, C-TPalgrave Macmillan PressJournal of the Operational Research SocietyC.S. Shi and C.T. Su, Integrated inventory model of returns-quantity discounts contract. Journal of the Operational Research ...
Under the percent model, you can set quantity discounts as a percent off your business price. The fixed price model allows you to set a fixed price per unit at different quantity tiers. It is not a fixed discount amount off the price. If you use the percent model, you can change your...
Now, consider a simple quantity discount contract t = ([P.sub.1], [P.sub.2]), where [P.sub.1] is B's payment to S for one unit and [P.sub.2] is B's payment to S for two units. The competitive effects of quantity discounts Table 3 After-Discount Profits for Example 1 Per...
Finally, an example illustrates the application of the model. After inventory coordination, both the supplier and the retailer have a positive incremental profit. Keywords: inventory coordination, asymmetric information, quantity discounts, standard container...
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