Article ID: | iaor20083070 |
Country: | United Kingdom |
Volume: | 34 |
Issue: | 9 |
Start Page Number: | 2758 |
End Page Number: | 2773 |
Publication Date: | Sep 2007 |
Journal: | Computers and Operations Research |
Authors: | Qi Xiangtong, Dai Tinglong |
Keywords: | programming: dynamic, heuristics |
We study the problem of a manufacturer who outsources a single product to multiple capacitated suppliers. Given a pool of potential suppliers, a decision has to be made about which supplier(s) to use, and how much and how often to purchase from each selected supplier. We build an EOQ-type model with a finite-time horizon, which differs from the existing model in the literature with an infinite-time horizon. We design a dynamic programming and a scatter search algorithm to solve the problem, and provide computational results to show the effectiveness of the proposed methods.