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Is price‐quantity discount dead in a just‐in‐time environment?

Omprakash K. Gupta (Division of Business and Economics, Indiana University Northwest, Gary, Indiana, USA)
Ranjan B. Kini (Division of Business and Economics, Indiana University Northwest, Gary, Indiana, USA)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 1 September 1995

1724

Abstract

Companies have traditionally relied on taking advantage of price‐quantity discount (PQD) on large purchases. With the adoption of just‐in‐time (JIT) philosophy companies are encouraged to purchase materials in small lots to synchronize production with deliveries. This raised a question whether PQD is applicable in a JIT purchasing environment. Argues that though seemingly inconsistent, JIT and PQD can coexist. Develops an integrated JIT‐PQD model to allow a buyer to decide how much to purchase and how many shipments be placed per order.

Keywords

Citation

Gupta, O.K. and Kini, R.B. (1995), "Is price‐quantity discount dead in a just‐in‐time environment?", International Journal of Operations & Production Management, Vol. 15 No. 9, pp. 261-270. https://doi.org/10.1108/01443579510099797

Publisher

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MCB UP Ltd

Copyright © 1995, MCB UP Limited

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