LOT SIZE OPTIMIZATION WITH QUANTITY AND FREIGHT RATE DISCOUNTS

Discounts are a common marketing tool for soliciting customers to increase their lot sizes. Common discounts encountered by organizations include quantity discounts from suppliers and freight discounts from shippers. This paper incorporates quantity and freight discounts into the lot size decision in a deterministic economic order quantity system. An optimum lot sizing algorithm is developed for the dual discount situation of all-units quantity discounts and all-weight freight discounts.

• Corporate Authors:

  University of British Columbia, Vancouver

  Centre for Transportation Studies
  Vancouver, British Columbia  Canada  V6T 1W5
• Authors:
  • Tersine, R J
  • BARMAN, S
• Publication Date: 1991-12

Media Info

• Features: Appendices; Figures; References;
• Pagination: p. 319-332
• Serial:
  • LOGISTICS AND TRANSPORTATION REVIEW
  • Volume: 27
  • Issue Number: 4

Subject/Index Terms

• TRT Terms: Algorithms; Commodities; Discount; Freight traffic; Freight transportation; Marketing; Shipping; Unitized cargo
• Uncontrolled Terms: Quantities; Unit load method
• Old TRIS Terms: Lots
• Subject Areas: Freight Transportation; Highways; Marine Transportation; Planning and Forecasting; Society; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00619547
• Record Type: Publication
• Files: TRIS
• Created Date: Feb 29 1992 12:00AM