An Optimal Ordering Policy under the Condition of a Free Addition

덤이 주어지는 상황하의 최적주문정책

  • Shinn, Seong-Whan (Department of Industrial Engineering, Halla Institute of Technology) ;
  • Song, Chang-Yong (Department of Buisiness Administrration, Tamna University)
  • Published : 2000.03.31

Abstract

This paper deals with the problem of determining the optimal ordering quantity under the condition of a free addition. It is assumed that the supplier permits a fixed free addition depending on the amount of the quantity purchased by the customer. Investigation of the properties of an optimal solution allows us to develop an algorithm whose validity is illustrated through an example problem.

Keywords