Quantity Discounts for Supply Chain Coordination

  title={Quantity Discounts for Supply Chain Coordination},
  author={Soo Chan Choi and Lei Lei and Qiang Wang},
Coordinating activities among members of a supply chain/distribution channel has been a subject of great attention in the past two decades. Among various methods to coordinate independent channel members, a number of studies in the literature suggest quantity discount as a mechanism to achieve incentive-compatible coordination between a seller/manufacturer and his buyer/retailer. The rationale behind this coordination mechanism is that a quantity discount schedule can be designed to align the… CONTINUE READING