In this paper, we analyze how a supplier can structure the terms of an optimal quantity discount schedule. The vendor's challenge is to adjust his present pricing schedule to entice his major customer to increase his present order size by a factor of "K." Optimal levels for "K" and the...

Professor Joglekar is to be thanked for his generally insightful Comments (1988) concerning my paper (Monahan [Monahan, J. P. 1984. A quantity discount pricing model to increase vendor points. Management Sci. 30(6, June) 720--726.). He has in my view correctly assessed the limitations of two...