Article ID: | iaor2005445 |
Country: | Netherlands |
Volume: | 32 |
Issue: | 6 |
Start Page Number: | 581 |
End Page Number: | 590 |
Publication Date: | Nov 2004 |
Journal: | Operations Research Letters |
Authors: | Lee Chung-Yee |
Motivated by a practical industrial problem where a manufacturer stipulates a minimum order from each buyer but where a local dealer promises the buyer a just-in-time delivery with a slightly higher unit cost, this paper uses a dynamic lot-sizing model with a stepwise cargo cost function and a minimum order amount constraint to help the buyer select the supplier with minimum total cost.