| The problem of freight has great influence on the retailer’s ordering strategy, in the actualbusiness，in order to get the biggest economic interests, suppliers implement freight free strategywith some conditions. Retailers can enjoy free freight delivery, when their order is more thansupplier’s demand. Therefore, freight free strategy with some conditions becomes more andmore important in the actual business. Because this strategy can reduce the supplier orderprocessing fees and achieve the purpose of economies of scale due to retailers increase orderquantity.Deteriorating Items will have certain loss in the storage, in order to meet the needs of theconsumers in a cycle, retailers need to buy more goods according to the metamorphic rate. In thispaper, based on the corrosion of the inventory items to have certain characteristics of loss, Weconsider the minimum cost of the retailers, first establish a free shipping optimal model tocompute the least size from the supplier’s perspective. Then, it gives the solution method of thefree shipping quantity, at last we illustrate the model in detail through numerical examples Then,the research on retailers who do not have enough money how to determine the optimum orderstrategy for the Minimum cost, when suppliers give delay pay period and cash discount period,based on the freight free strategy with some conditions. |
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