Two-Stage Quantity Discounts Model for channel coordination

채널협력을 위한 2단계 수량할인모델

Studies on quantity discounts have been in two directions since Buchanen[1] published that suppliers provide quantity discounts for price discrimination and for channel efficiency. The quantity discounts for price discrimination have been treated in economics. On the contrary, the quantity discounts for channel efficiency have been studied in production management with assumptions and focuses different from economics. In this paper, the differences in each area are analyzed and purchasing situations that supplier's motivation on quantity discounts occurs is analyzed and the purchasing situations for two-stage quantity discounts are specified. In conclusion, we suggest that suppliers can enhance channel coordination through two stage quantity discounts in these purchasing situations.