Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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Cooperative Determination of Economic Order Quantity to Reduce a Supplier's Freight Cost

공급자의 운송비용을 절감하기 위한 경제적 발주량의 상효협동적 걸졍

  • Kim, Kap-Hwan (Dept.of Industrial Engineering, Busan National University) ;
  • Hwang, Hark (Korea Advanced Institute of Science and Technology)
  • Published : 1989.06.01
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Abstract

A joint economic ordering problem between supplier and customer has been formulated where a supplier has to pay the freight cost which follows the principle of economy of scale. An algorithm is given to determine order size and price simultaneously which give gains to both parties. A scenario is presented within which both parties come to a mutual agreement on the revised order size and price by utilizing quantity discount schedule.

Keywords

References

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