Capacitated Multiple Item Ordering Problem with Quantity Discounts

Hasan Pirkul · Ömer Arif Aras

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Supply Chain and Inventory Management Optimization and Mathematical Programming Optimization and Packing Problems

Abstract

Purchasing managers face a complex problem when determining order quantities for multiple items in the presence of quantity discounts and resource limitations. In this paper, the problem is formulated as a mathematical programming model. An efficient solution algorithm is developed utilizing the Lagrangian relaxation approach. Extensive computational experiments are performed and the results are presented.

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1964Analysis of Inventory Systems.1978A Dual-Based Procedure for Uncapacitated Facility Location 1978Lagrangean Relaxation Applied to Capacitated Facility Location Problems 1980Database Location in Computer Networks

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1989The capacitated maximal covering location problem with backup service 1988Locating concentrators for primary and secondary coverage in a computer communications network 2006An application of real-coded genetic algorithm (RCGA) for mixed integer non-linear programming in two-storage multi-item inventory model with discount policy 2005The joint replenishment problem with quantity discounts under constant demand 2014Joint replenishment with imperfect items and price discount 1994Capacitated Multiple Item Ordering with Incremental Quantity Discounts 2003Evaluating jointly constrained order quantity complexities for incremental discounts 2008The joint replenishment problem involving multiple suppliers offering quantity discounts

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