Journal article
A supplier's pricing model under a customer's economic purchasing policy
Omega (Oxford), v 14(5), pp 409-414
1986
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This paper develops a pricing model from the perspective of a supplier who produces and supplies a product to order from a single customer on a lot-for-lot basis. Assuming that the customer's ordering behavior is optimal, i.e. the customer follows his economic purchasing policy, the objective of the supplier is to determine the product's selling price, so that a specified gross profit goal is achieved. The algebraic interactions between the price of the product, the customer's EOQ and the supplier's profit level are taken into consideration during the model construction process. The concepts developed are illustrated through a numerical example, which attempts to demonstrate the usefulness of the model in setting an appropriate price for a product under the conditions described.
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Details
- Title
- A supplier's pricing model under a customer's economic purchasing policy
- Creators
- Avijit Banerjee - Louisiana State University
- Publication Details
- Omega (Oxford), v 14(5), pp 409-414
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Decision Sciences (and Management Information Systems); Bennett S. LeBow College of Business; Drexel University
- Web of Science ID
- WOS:A1986E116500007
- Scopus ID
- 2-s2.0-38249041618
- Other Identifier
- 991019551904104721
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InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Web of Science research areas
- Management
- Operations Research & Management Science