Abstract: Based on the newsboy model for price discounts,the bended price-demand curve for distributors is analyzed.Progressive price discounts of products are adopted to pursue the expected maximum profit,and thenan algorithm for calculating the times of the price discounts is developed and the optimal order quantity of distributors can be obtained.To compare withe the non-changeable slope of th price-demand curve b,the increase of b seldom influences the optimal order quantity,and the decrease of b obviously influences the optimal order quantity.

Key words: perishable product, price discount, newsboy model, ordering policy