טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentShaposhnik Yaron
SubjectAn EOQ-Type Model with a Probabilistic One-Time Unit-Price
Discount
DepartmentDepartment of Industrial Engineering and Management
Supervisors Professor Yale Herer
Dr. Hussein Naseraldin
Full Thesis textFull thesis text - English Version


Abstract

This work belongs to a line of work dealing with the way ordering policies should adapt to respond to discounts on the unit purchasing price. Specifically, we investigate a probabilistic one-time unit-price discount in the EOQ environment. That is, at a pre-specified future time, a one-time discount on the unit-price may occur with a known probability. This may occur due to outcome of some future event. An example for such an event may be the Olympics, timing of which is known in advance and may create a special purchasing opportunity due to flooding of the market with unsold goods (but then again, may not). Our goal is to find the optimal ordering policy over the infinite horizon starting at the present time, at which the unit-price discount is announced. Our emphasis is to prove the form and parameters of the optimal ordering policy.