Optimal order strategy with free shipping option

Xitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice

Volumn 30, Issue 3, 2010, Pages 506-512

  Hua, Guo Wei ^a   Li, Jian ^b   Tian, Xin ^c   Yang, Feng Mei ^b  

^a BEIJING JIAOTONG UNIVERSITY   (China)

^b BEIJING UNIVERSITY OF CHEMICAL TECHNOLOGY   (China)

^c UNIVERSITY OF CHINESE ACADEMY OF SCIENCES   (China)

Author keywords

EOQ model; Free shipping; Newsvendor model; Order strategy

Indexed keywords

E-BUSINESS COMPANY; EOQ MODELS; FREE SHIPPING; MARKETING TOOLS; NEWSVENDOR MODELS; NUMERICAL STUDIES; STOCHASTIC DEMAND; TRANSPORTATION COST;

ECONOMIC ANALYSIS; ELECTRONIC COMMERCE; SALES;

OPTIMIZATION;

EID: 77952755761     PISSN: 10006788     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (10)

1. Knowledge@Wharton. How the offer of 'free shipping' affects on-line shopping[J/OL]. http://knowledge.wharton.upenn.edu/article.cfm?articleid=1449.
2. Leng M, Parlar M. Free shipping and purchasing decisions in B2B transactions: A game-theoretic analysis[J]. IIE Transaction, 2005, 37: 1119-1128.
3. Abad P L, Aggarwal V. Incorporating transport cost in the lot size and pricing decisions with downward sloping demand[J]. International Journal of Production Economics, 2005, 95: 297-305.
4. Ertogral K, Darwish M, Daya M B. Production and shipment lot sizing in a vendor-buyer supply chain with transportation cost[J]. European Journal of Operational Research, 2007, 176: 1592-1606.
5. Ertogral K. Multi-item single source ordering problem with transportation cost: A Lagrangian decomposition approach[J]. European Journal of Operational Research, 2008, 191: 156-165.
6. Russell R M. Optimal purchase and transportation cost lot sizing for a single item[J]. Decision Science, 1991, 22: 940-951.
7. Swenseth S R, Godfrey M R. Incorporating transportation costs into inventory replenishment decisions[J]. International Journal of Production Economics, 2002, 77: 113-130.
8. Zhou B, Katehakis M N, Zhao Y. Managing stochastic inventory systems with free shipping option[J]. European Journal of Operational Research, 2009, 196: 186-197.
9. Yang Y, Essegaier S, Bell D R. Contingent free shipping and repeat busing on the Internet[OL]. Working Paper, http://isb.edu/faculty/upload/Doc2510200623 54.pdf.
10. Fisher M. What is the right supply chain for your product?[J]. Harvard Business Review, 1997, 75(2): 105-116.