Distribution network design and planning decisions are integral components of supply chain design and management. Location Inventory Problem (LIP) models are widely regarded in literature as comprehensive distribution network design models. In a pragmatic scenario, suppliers offer quantity discounts to customers; however, there has been no attempt to study the impact of quantity discounts on LIP models. In this thesis, we study the impact of offering quantity discounts in a profit maximizing location inventory model. Under this modeling paradigm, we find that quantity discounts impact network configuration decisions, optimal order quantities, and network profit.
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