Article ID: | iaor20083782 |
Country: | United Kingdom |
Volume: | 34 |
Issue: | 12 |
Start Page Number: | 3682 |
End Page Number: | 3690 |
Publication Date: | Dec 2007 |
Journal: | Computers and Operations Research |
Authors: | Abdel-Malek Layek, Yang Shitao, Yang Jian |
Keywords: | programming: nonlinear |
We studied a supplier selection problem, where a buyer, while facing random demand, is to decide ordering quantities from a set of suppliers with different yields and prices, We provided the mathematical formulation for the buyer's profit maximization problem and proposed a solution method based on a combination of the active set method and the Newton search procedure. Our computational study shows that the proposed method can solve the problem efficiently, and is able to generate interesting and insightful results that lead us to various managerial implications.