Pricing Policies for Quantity Discounts

Maqbool Dada
Maqbool Dada
College of Business Administration, University of Illinois at Chicago, Chicago, Illinois 60680
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,
K. N. Srikanth
K. N. Srikanth
College of Business Administration, University of Illinois at Chicago, Chicago, Illinois 60680
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Maqbool Dada

College of Business Administration, University of Illinois at Chicago, Chicago, Illinois 60680

Search for more papers by this author

K. N. Srikanth

College of Business Administration, University of Illinois at Chicago, Chicago, Illinois 60680

Search for more papers by this author

Published Online:1 Oct 1987https://doi.org/10.1287/mnsc.33.10.1247

Abstract

In this paper we analyze the seller's decision to offer quantity discounts to the buyer. We build on an existing model as follows. We first characterize the range of order sizes and prices which reduce costs for the buyer and seller, and develop related pricing schemes. The model is then extended to allow inventory carrying costs to be a function of price.

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Volume 33, Issue 10

October 1987

Pages 1209-1365

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Published Online:October 01, 1987

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Maqbool Dada, K. N. Srikanth, (1987) Pricing Policies for Quantity Discounts. Management Science 33(10):1247-1252.

https://doi.org/10.1287/mnsc.33.10.1247

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Pricing Policies for Quantity Discounts

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