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Chinese Journal of Management Science ›› 2012, Vol. 20 ›› Issue (6): 70-77.

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Supplier’s Free Shipping Quantity with Pice All-Unit-Discount

WEI Tao1, WANG Yi-ju1, HUA Guo-wei2   

  1. 1. School of Management Science,Qufu Normal University,Rizhao 276800,China;
    2. School of Economics and Management,Beijing Jiaotong University,Beijing 100044,China
  • Received:2010-12-14 Revised:2012-09-03 Online:2012-12-29 Published:2012-12-28

Abstract: In this paper,under condition of economic order quantity model,firsty a free shipping optimal model is established to compute the least order size from the supplier’s perspective,and then the model is extended to the case of the price all-unit-discount and transport costs discount.A solution method to solve the model is given. The condition under which the free ship model can be used and how much benefit can be made is theoretically analyzed.

Key words: free shipping, inventory management, transportation fee, quantity discount, FSQ

CLC Number: