AN INCENTIVE EOQ INVENTORY MODEL WITH PRICE DISCOUNT

This article looks at the problem of a supplier placing an order and providing a
consumer a discount. This study's objective is to develop a decision-making procedure that
will assist retailers in selecting between a regular order policy and a special order policy.
The three possibilities in the created model are the optimal special order quantity is
calculated with both regular and additional quantity benefits, while the optimal special
order quantity is determined only with additional quantity benefits and the optimal order
quantity is computed without taking advantage of price savings. This study finds the ideal
solution, illustrates the theoretical conclusions using a variety of numerical examples, and
then runs a sensitivity analysis of the ideal solution with respect to the key parameters.