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An integrated inventory location model considering all-unit quantity discount


Tang, Sai Hong and Firoozi, Zahra and Mohd Ariffin, Mohd Khairol Anuar and Ariafar, Shahram (2011) An integrated inventory location model considering all-unit quantity discount. African Journal of Business Management, 5 (27). art. no. 047B24816698. pp. 10965-10971. ISSN 1993-8233


One of the recent areas in distribution network design is integrated inventory location problems, which jointly determines the inventory control decisions and facility location decisions of a distribution network. A typical distribution network consists of suppliers, several retailers, and several distribution centers. Distribution centers order products from suppliers to fulfil demands of retailers. To achieve risk pooling benefits, inventory of several retailers is aggregated into one distribution center. This situation has made distribution centers more likely to take the advantage of quantity discount from suppliers. However, most previous models have investigated the problem under the basic economic order quantity EOQ with (Q, r) inventory policy and yet quantity discount has not been considered. This paper shows that considering quantity discount instead of EOQ policy can reduce the total cost and change the optimal configuration of the networks.

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Additional Metadata

Item Type: Article
Divisions: Faculty of Engineering
DOI Number: https://doi.org/10.5897/AJBM10.1214
Publisher: Academic Journals
Keywords: Integrated inventory location problem; Distribution network design; All-unit quantity discount; EOQ model; Supply chain management
Depositing User: Muizzudin Kaspol
Date Deposited: 12 Jan 2016 07:09
Last Modified: 16 Nov 2017 04:08
Altmetrics: http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.5897/AJBM10.1214
URI: http://psasir.upm.edu.my/id/eprint/23184
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