Although the volume discount problem has been studied in the realm of a single supplier and a single buyer, when demand is price sensitive, it is not well understood when a buyer has a group of independent and different buyers. The problem is analyzed as a Stackelberg game whereby the supplier acts as the leader and the buyers act as the followers. Based on the analysis of the buyer' s response to a common volume discount schedule, a nonlinear programming is formulated and a heuristic is developed. It is shown that volume discounts is able to significantly stimulated demand The supplier and the system's profits achieved by volume discounts are higher than quantity discounts, and coordination efficiency of volume discounts is nearly 100%.
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Donghua Univ, Glorious Sun Sch Business & Management, Shanghai 200051, Peoples R ChinaDonghua Univ, Glorious Sun Sch Business & Management, Shanghai 200051, Peoples R China
Li, Yingxiao
Zhou, Jianheng
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Donghua Univ, Glorious Sun Sch Business & Management, Shanghai 200051, Peoples R ChinaDonghua Univ, Glorious Sun Sch Business & Management, Shanghai 200051, Peoples R China
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Hong Kong Polytech Univ, Dept Logist & Maritime Studies, Hong Kong, Hong Kong, Peoples R ChinaHong Kong Polytech Univ, Dept Logist & Maritime Studies, Hong Kong, Hong Kong, Peoples R China
Jiang, Li
Wang, Yunzeng
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Univ Calif Riverside, A Gary Anderson Grad Sch Management, Riverside, CA 92521 USAHong Kong Polytech Univ, Dept Logist & Maritime Studies, Hong Kong, Hong Kong, Peoples R China
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Korea Univ, Grad Sch Informat Management & Secur, Seoul 136713, South KoreaKorea Univ, Grad Sch Informat Management & Secur, Seoul 136713, South Korea
Hong, Ki-sung
Lee, Chulung
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Korea Univ, Div Ind Management Engn, Seoul 136713, South Korea
Korea Univ, Grad Sch Management Technol, Seoul 136713, South KoreaKorea Univ, Grad Sch Informat Management & Secur, Seoul 136713, South Korea
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Grand Valley State Univ, Seidman Coll Business, Management Dept, 50 Front Ave SW, Grand Rapids, MI 49504 USAGrand Valley State Univ, Seidman Coll Business, Management Dept, 50 Front Ave SW, Grand Rapids, MI 49504 USA
Hu, Xiangling
Su, Ping
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Hofstra Univ, Frank G Zarb Sch Business, Dept Management & Entrepreneurship, Hempstead, NY 11550 USAGrand Valley State Univ, Seidman Coll Business, Management Dept, 50 Front Ave SW, Grand Rapids, MI 49504 USA
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Penn State Univ, Harold & Inge Marcus Dept Ind & Mfg Engn, University Pk, PA 16802 USAPenn State Univ, Harold & Inge Marcus Dept Ind & Mfg Engn, University Pk, PA 16802 USA
Ventura, Jose A.
Bunn, Kevin A.
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Penn State Univ, Harold & Inge Marcus Dept Ind & Mfg Engn, University Pk, PA 16802 USAPenn State Univ, Harold & Inge Marcus Dept Ind & Mfg Engn, University Pk, PA 16802 USA
Bunn, Kevin A.
Venegas, Barbara B.
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Penn State Univ, Harold & Inge Marcus Dept Ind & Mfg Engn, University Pk, PA 16802 USAPenn State Univ, Harold & Inge Marcus Dept Ind & Mfg Engn, University Pk, PA 16802 USA
Venegas, Barbara B.
Duan, Lisha
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Penn State Univ, Harold & Inge Marcus Dept Ind & Mfg Engn, University Pk, PA 16802 USAPenn State Univ, Harold & Inge Marcus Dept Ind & Mfg Engn, University Pk, PA 16802 USA