Consider a family of SKUs for which the supplier will offer a quantity discount, according to the aggregate purchases of the product group. Management of those items is based on the modified periodic policy. From the supplier's point of view, what are the optimal parameters (breakpoint and...

Shipment consolidation is a logistics strategy that combines two or more orders or shipments so that a larger quantity can be dispatched on a same vehicle. This paper discusses a discrete-time Markovian decision process (MDP) approach for determining when to release consolidated loads. We assume...