Order lot sizing with multiple capacitated suppliers offering leadtime-dependent capacity reservation and unit price discounts

Order lot sizing with multiple capacitated suppliers offering leadtime-dependent capacity reservation and unit price discounts

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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:
Keywords: lot sizing
Abstract:

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.

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