An Improved Procedure for Economic Order Quantity with All‐unit Price Discounts Available to Purchase

Suppliers often offer price discounts for large purchases. These discounts are generally of two types: all‐unit discounts and incremental discounts. An improved procedure is presented for determining the economic order quantity under an all‐unit discounting scheme. Upper bounds on the total relevant costs are obtained which are used to discard certain high‐price ranges from consideration.