Giri, B. C.; Chakraborty, T.; Chaudhuri, K. S. Retailer’s optimal policy for a perishable product with shortages when supplier offers all-unit quantity and freight cost discounts. (English) Zbl 1004.91023 Proc. Natl. Acad. Sci. India, Sect. A 69, No. 3, 315-326 (1999). Summary: This paper addresses a problem encountered by retailers whose suppliers offer all-unit-quantity discounts on both purchase price and freight cost and the retailers in turn offer customers a lower price. The change in price and the resulting change in demand and their effects on inventory policy are analysed by considering a special class of price-dependent demand functions. Shortages in inventory are allowed and are completely backlogged. A solution algorithm is presented to determine retailer’s optimal price and ordering policies. A numerical example is given to illustrate the developed algorithm. Finally, the sensitivity analysis is carried out to examine the effects of changes of input parameters on the optimal results. Cited in 3 Documents MSC: 91B24 Microeconomic theory (price theory and economic markets) 91B42 Consumer behavior, demand theory Keywords:price-dependent demand; quantity discount; shortages PDFBibTeX XMLCite \textit{B. C. Giri} et al., Proc. Natl. Acad. Sci. India, Sect. A 69, No. 3, 315--326 (1999; Zbl 1004.91023)