Article ID: | iaor20052027 |
Country: | United Kingdom |
Volume: | 32 |
Issue: | 1 |
Start Page Number: | 1 |
End Page Number: | 14 |
Publication Date: | Jan 2005 |
Journal: | Computers and Operations Research |
Authors: | Leung Janny M.Y., Basnet Chuda |
Keywords: | heuristics |
This paper presents a multi-period inventory lot-sizing scenario, where there are multiple products and multiple suppliers. We consider a situation where the demand of multiple discrete products is known over a planning horizon. Each of these products can be sourced from a set of approved suppliers, a supplier-dependent transaction cost applying for each period in which an order is placed on a supplier. A product-dependent holding cost per period applies for each product in the inventory that is carried across a period in the planning horizon. The decision maker needs to decide what products to order in what quantities with which suppliers in which periods. An enumerative search algorithm and a heuristic are presented to address the problem.