Optimal Selling Quantity and Purchasing Price for Intermediary Firms
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 1 October 1991
Abstract
Intermediary firms are economic agents that purchase from mostly small and numerous independent producers and sell to other firms or to the public. This article investigated how intermediary firms can optimally determine both selling quantity and purchasing price of a product. By incorporating the special structure of intermediary firms′ environments and by modifying the conventional economic order quantity (EOQ) model accordingly, we provide optimal decision rules regarding the selling quantity and purchasing price for intermediary firms under profit maximisation.
Keywords
Citation
Chen, C. and Jo Min, K. (1991), "Optimal Selling Quantity and Purchasing Price for Intermediary Firms", International Journal of Operations & Production Management, Vol. 11 No. 10, pp. 64-68. https://doi.org/10.1108/EUM0000000001291
Publisher
:MCB UP Ltd
Copyright © 1991, MCB UP Limited