Capacitated multiple item ordering with incremental quantity discounts

Capacitated multiple item ordering with incremental quantity discounts

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Article ID: iaor19951228
Country: United Kingdom
Volume: 45
Issue: 10
Start Page Number: 1197
End Page Number: 1205
Publication Date: Oct 1994
Journal: Journal of the Operational Research Society
Authors: , ,
Keywords: heuristics
Abstract:

This paper presents a heuristic algorithm for determining order quantities for multiple items given incremental quantity discounts and a single resource constraint. The heuristic is based on Lagrangean relaxation. The performance of the heuristic is compared, for small problems, with a procedure that generates optimal solutions. Results from computational experiments are given that demonstrate the quality and computational efficiency of the heuristic algorithm.

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