Quantity Discounts: Managerial Issues and Research Opportunities

Dolan, Robert J.

doi:10.1287/mksc.6.1.1

Cited by 264 publications

(99 citation statements)

References 14 publications

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“…We refer below to a quantitydiscount type of contract in the form of a two-part tariff (Dolan 1987) which is known to coordinate the corresponding forward supply chain (cf. Kohli and Park 1989).…”

Section: Contracting On the Deposit Amount And A Two-part Tariffmentioning

confidence: 99%

A vendor–purchaser economic lot size problem with remanufacturing

et al. 2014

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In this paper, we study a closed-loop supply chain in which a single purchaser orders a particular product from a single vendor and sells it on the market. A certain fraction of used items return from the market back to the purchaser, who is responsible for collecting and returning them to the vendor. In addition to manufacturing new items, the vendor is able to remanufacture the returns into as-good-as-new items which are subsequently used to serve market demand. Our framework features the conventional joint economic lot size (JELS) model extended to include the return flow of the used items. In line with the assumptions of the JELS model, we assume a deterministic constant demand for the product. The fraction of used items returning from the market is assumed to depend on the purchaser's collection effort. To stimulate the returns, the vendor may offer the purchaser a transfer payment per item returned. The questions addressed by this study pertain to the optimal centralised control of this closed-loop supply chain, to the individually optimal policies of its members, and to the coordination within this supply chain under a decentralised control. In particular, we show that the transfer payment alone cannot coordinate the supply chain under consideration and may even fail to do so when combined with a two-part tariff -which is otherwise known to coordinate the corresponding forward supply chain. Our numerical study, though, has revealed that the combined contract is capable of substantially reducing the coordination deficit. We also introduce a novel three-part tariff which is shown to enable supply chain coordination in combination with the transfer payment.

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Section: Contracting On the Deposit Amount And A Two-part Tariffmentioning

confidence: 99%

A vendor–purchaser economic lot size problem with remanufacturing

et al. 2014

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“…This paper is not focussing on the topic of price discounts, but suffice it to say that it is now well researched that price discounts are rational not only to reduce logistics costs but for various strategic and marketing reasons, see Dolan (1987) and Munson and Rosenblatt (1998), and in particular in the case of price-elastic demand, see e.g. Viswanathan and Wang (2003).…”

Section: Crowther (1964)mentioning

confidence: 99%

“…Crowther is briefly mentioned in the reviews on quantity discounts of Dolan (1987), Benton and Park (1996), Munson and Rosenblatt (1998), and Viswanathan and Wang (2003), but his model is not discussed in detail nor reproduced. Most of the papers that classify themselves as following Crowther, actually follow the approach of Dolan (1978), including Lal and Staelin (1984); Dada and Srikanth (1987); Park (1989, 1994); Lam and Wong (1996); Wang and Wu (2000); Wang (2002Wang ( , 2005.…”

Section: Crowther In the Literaturementioning

confidence: 99%

Revisiting foundations in lot sizing—Connections between Harris, Crowther, Monahan, and Clark

Beullens

2014

International Journal of Production Economics

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While many review articles exist on (deterministic) lot sizing models used in the context of price and quantity discounts, buyer-vendor coordination, supply chain management, and joint economic lot sizing problems, they do not convey the impact of important findings which date back to at least 2002, or, in hindsight, to 1984. As a result, many recent articles still model the financial implications of lot sizing decisions without having the assurance that these models would help the firm(s) involved in maximising the Net Present Value (NPV). This paper therefore reviews these findings, while adding also its own contributions, as to convey the general importance to lot sizing theory. We show that the underlying principles used in the four key articles that have led to a division in modelling approaches are in fact all in line with NPV, and argue that therefore there should not be these discrepancies that currently persist in the literature. We establish the connections between these four strands of literature using the solution to a simple variation of Harris' EOQ model, deriving thereby results from Boyaci and Gallego (2002) and Beullens and Janssens (2011), but showing their general applicability to any type of supply-chain structure. The breath of implications to deterministic lot sizing theory is illustrated using practical examples. We present a stochastic version of the model of Crowther (1964), which is arguably the least understood and applied model, but on the other hand the most important one in realising how these modelling strands can be unified.

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“…quantity-dependent unit prices, are well-known coordinating components in supply chain contracts. There are several forms of discount policies; see Dolan (1987) for a review. Discount policies are the main coordinating components in supply chains with deterministic demand.…”

Section: Contracts With Discount Policiesmentioning

confidence: 99%

Coordinating Contracts in SCM: A Review of Methods and Literature

Hezarkhani

Kubiak

2010

dmms

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Abstract. Supply chain coordination through contracts has been a burgeoning area of research in recent years. In spite of rapid development of research, there are only a few structured analyses of assumptions, methods, and applicability of insights in this field. The aim of this paper is to provide a systematic overview of coordinating contracts in supply chain through highlighting the main concepts, assumptions, methods, and present the state-of-theart research in this field.

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Quantity Discounts: Managerial Issues and Research Opportunities

Cited by 264 publications

References 14 publications

A vendor–purchaser economic lot size problem with remanufacturing

A vendor–purchaser economic lot size problem with remanufacturing

Revisiting foundations in lot sizing—Connections between Harris, Crowther, Monahan, and Clark

Coordinating Contracts in SCM: A Review of Methods and Literature

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