Power-of-two policiesforsingle-warehousemulti-retailerinventorysystemswith order frequencydiscounts

This paperpresentspower-of-twopoliciesforasingle-warehousemulti-retailersystem.Inthissystem, discounts onthepurchasingcostbasedonorderfrequencyaregiventothewarehouse.Modelswithas- sumptions analogoustotheEOQenvironmentarediscussedforall-unitandincrementalorderfrequency discounts. 94%-effectivepower-of-twopoliciesaredevelopedforbothmodels.Forincrementaldiscounts, a 98%-effectivepower-of-twopolicyforavariablebaseplanningperiodisalsoderived.Foreachmodel, a computationalstudyshowseverytestproblemconsideredhasapower-of-twopolicythatisover96% effective. Anextensiontoholdingcoststhataredependentonthepurchasingpriceisalsoprovided.