Article ID: | iaor2009821 |
Country: | United Kingdom |
Volume: | 19 |
Issue: | 2 |
Start Page Number: | 142 |
End Page Number: | 149 |
Publication Date: | Mar 2008 |
Journal: | Production Planning and Control |
Authors: | Hassini E. |
Keywords: | lot sizing |
A resource-constrained single product, multi-period and multi-supplier production order lot sizing and supplier selection problem with price discounts is considered. The suppliers offer a menu of price discounts and order sizes (capacity) restrictions that are dependent on the purchaser's desired leadtimes. We formulate the problem as a linear program and present several interesting insights on how the model results could be used by the purchaser and suppliers to optimise their replenishment processes.