Intermediary firms are economic agents that purchase from mostlysmall and numerous independent producers and sell to other firms or tothe public. This article investigated how intermediary firms canoptimally determine both selling quantity and purchasing price of aproduct. By incorporating the special structure of intermediary firmsenvironments and by modifying the conventional economic order quantityEOQ model accordingly, we provide optimal decision rules regarding theselling quantity and purchasing price for intermediary firms underprofit maximisation.
International Journal of Operations & Production Management – Emerald Publishing
Published: Oct 1, 1991
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