Abstract
We examine a new algorithm developed by Kuzdrall and Britney [5] for locating the optimal order quantity in the presence of quantity discounts. Their algorithm, based on a model for the supplier's formulation of the price schedule, involves a regression analysis to identify the supplier's variable cost per unit and the fixed cost that the supplier seeks to recover, followed by an iterative search for the optimum. The authors describe this method as a “convenient alternative to the aimless searching of traditional approaches” [5, p. 101]. We examine the allegation of superiority of their total setup lot‐sizing model over the classical method and dispute their claim of superiority.
Original language | English (US) |
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Pages (from-to) | 270-281 |
Number of pages | 12 |
Journal | Decision Sciences |
Volume | 14 |
Issue number | 2 |
DOIs | |
State | Published - Apr 1983 |
Externally published | Yes |
Keywords
- Inventory Management
- Production/Operations Management
ASJC Scopus subject areas
- General Business, Management and Accounting
- Strategy and Management
- Information Systems and Management
- Management of Technology and Innovation