Article ID: | iaor19941326 |
Country: | Netherlands |
Volume: | 29 |
Issue: | 2 |
Start Page Number: | 223 |
End Page Number: | 231 |
Publication Date: | Mar 1993 |
Journal: | International Journal of Production Economics |
Authors: | Madan M., Bramovski T., Gnanendran K. |
Keywords: | heuristics |
This paper presents an intuitive heuristic method for determining order quantities in an all-unit discount environment with budget constraints. The approach is utility-based and allows the decision maker to incorporate a number of criteria in the objective function. The model is simple to understand and can be easily implemented on a personal computer using a standard spreadsheet. The simplicity of the approach makes it an attractive decision support tool for replenishing inventory in small retail businesses such as automotive parts stores and hardware stores.