Costing partial order cycles in the temporary sale price problem

Article Abstract:

The net present value (NPV) and average cost (AVC) methods were used in studying the selection of a special order quantity in response to a temporary price reduction. Results indicate that the partial order cycle problem is omitted when NPV is used is measuring cash flows at the time of occurrence. It has also been observed that the ordering principles remain invariant even if the simpler AVC model is used over the more complex NPV model. It has also been proven that the AVC model is easier to use than the more theoretically correct NPV model.

Sales Promotion, Pricing Policy, Pricing, Sales promotions, Discounts (Sales)

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Some issues on the modelling of incentives for special sales

Article Abstract:

Sellers utilize financial tools, such as payment incentives, to induce buyers to discontinue existing ordering practices. These payment incentives have a direct effect on inventory policies due to changes imposed on elements of inventory cost functions. These costs are segregated into holding the merchandise and the money tied up in them. The relation between incentives and cost components can be seen in tradeoffs which leave the buyer in a strong position.

Special sales

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Incentives and productivity measurements

Article Abstract:

A study has been conducted to evaluate the performance and productivity of individual operations by combining mathematical programming methods and economic approaches. Results were used to analyze the contribution of incentive provisions in the operational efficiency of a decentralized organization. Specific incentive criteria were also identified to develop alternative approaches in productivity analysis.

Usage, Measurement, Data envelopment analysis, Industrial productivity

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