Standard Container Size Discounts and the Single-Period Inventory Problem*

This paper analyzes the problem of choosing the optimal order quantity and its associated number of standard containers making up the order for single-period inventory models under standard container size discounts. A range is determined that contains the optimal order quantity. Two algorithms are presented. The first algorithm solves the general case in which there is no restriction on the types of containers included in an order. The second algorithm solves a more restricted policy that requires the buyer to accept the order with successively smaller container sizes.