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Optimal Selling Quantity and Purchasing Price for Intermediary Firms

Cheng‐Kang Chen (Iowa State University, Ames, Iowa, USA)
K. Jo Min (Iowa State University, Ames, Iowa, USA)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 1 October 1991

Abstract

Intermediary firms are economic agents that purchase from mostly small and numerous independent producers and sell to other firms or to the public. This article investigated how intermediary firms can optimally determine both selling quantity and purchasing price of a product. By incorporating the special structure of intermediary firms′ environments and by modifying the conventional economic order quantity (EOQ) model accordingly, we provide optimal decision rules regarding the selling quantity and purchasing price for intermediary firms under profit maximisation.

Keywords

Citation

Chen, C. and Jo Min, K. (1991), "Optimal Selling Quantity and Purchasing Price for Intermediary Firms", International Journal of Operations & Production Management, Vol. 11 No. 10, pp. 64-68. https://doi.org/10.1108/EUM0000000001291

Publisher

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MCB UP Ltd

Copyright © 1991, MCB UP Limited