A dynamic quantity discount lot size model with resales |
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Affiliation: | 1. Department of Industrial Engineering & Innovation Sciences, Eindhoven University of Technology, Netherlands |
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Abstract: | This paper deals with a dynamic lot size problem in which the unit purchasing price depends on the quantity of an order and resale of the excess is possible at the end of each period. We assume an all units discount system with a single price break point. Investigation of the properties of an optimal solution allows us to develop a dynamic programming algorithm. A problem example is solved to illustrate the algorithm. |
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