Journal article
Buyer’s response to a temporary price reduction incorporating freight costs
Abstract
In this paper, we characterize the buyer’s response to a temporary price reduction. Although there have been many studies that have considered the above problem, most of those studies assume that the buyer orders FOB (free on board) destination and that the freight charges are included in the supplier’s unit price. Our model thus becomes applicable for a buyer whose strategy is to include transportation costs in their purchase decisions. The …
Authors
Abad PL
Journal
European Journal of Operational Research, Vol. 182, No. 3, pp. 1073–1083
Publisher
Elsevier
Publication Date
November 2007
DOI
10.1016/j.ejor.2006.08.050
ISSN
0377-2217