Abstract

This article treats the dynamic lot size model with quantity discount in purchase price. We study the problem with two different cost structures: the all-units-discount cost structure and the incremental-discount cost structure. We solve the problem under both discount cost structures by dynamic programming algorithms of complexity O(T3) and O(T2), respectively, with T the number of periods in the planning horizon.

Authors
Awi Federgruen and Chung-Yee Lee
Format
Journal Article
Publication Date
Journal
Naval Research Logistics

Full Citation

Federgruen, Awi and Chung-Yee Lee
. “The dynamic lot size model with quantity discount.”
Naval Research Logistics
vol.
37
, (January 01, 1990):
707
-
713
.