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EOQ model for imperfective items under a one-time-only discount
Authors:Wen-Kai Kevin Hsu  Hong-Fwu Yu
Institution:1. Department of Shipping & Transportation Management, National Kaohsiung Marine University, Taiwan, ROC;2. Graduate Institute of Commerce, National Kaohsiung University of Applied Sciences, 415 Chien Kung Road, Kaohsiung 807, Taiwan, ROC
Abstract:In practice, when a supplier is confronted with extreme completion in markets, unanticipated surplus in inventory, or change in the production run of a product, he/she may offer a special price discount to motivate buyers to order a special quantity. The purpose of the present paper is to investigate an inventory model for imperfective items under a one-time-only discount, where the defectives can be screened out by a 100% screening process and then can be sold in a single batch by the end of the 100% screening process. The optimal order policies associated with three kinds of effective times of the reduced price are obtained. Finally, a numerical example is provided to illustrate the proposed model.
Keywords:EOQ model  Special price discount  One-time-only discount  Imperfect quality
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