Determining Optimal Selling Price and Lot Size When the Supplier Offers All‐Unit Quantity Discounts*

1988/09/01 by Prakash L. Abad, P.L. Abad
Business, Management and Accounting · #Supply Chain and Inventory Management #Sustainable Supply Chain Management

paper · doi:10.1111/j.1540-5915.1988.tb00290.x

crossref issued 1988/09/01 · crossref published 1988/09/01 · crossref published-print 1988/09/01 · openalex publication_date 1988/09/01 · crossref published-online 2007/06/07 · crossref created 2007/06/07 · crossref deposited 2023/10/21 · openalex created_date 2025/10/10 · crossref indexed 2026/07/30 · openalex updated_date 2026/07/30

Abstract

ABSTRACT This paper is concerned with finding the optimal price and lot size for a retailer purchasing a product for which the supplier offers all‐unit quantity discounts. Demand for the product is assumed to be a decreasing function of price, and a procedure is developed for finding the optimal price and lot size for a class of demand functions. The procedure then is applied to two common demand functions: (1) the constant price‐elasticity function, and (2) the linear demand function.

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