A CLASSIFICATION OF LITERATURE ON DETERMINING THE LOT-SIZE UNDER QUANTITY DISCOUNTS

Determining a lot size in the presence of either all-units or incremen tal discounts has represented one of major interests of materials mana gers. It is a common practice that the suppliers offer quantity discou nt to entice the buyers to purchase more and to achieve economies of s cale for transportation and processing costs. This paper will classify the literature on lot sizing determination under several types of dis count schemes and discuss some of the significant literature in this a rea over two decades. Also, some future research areas have been ident ified.