Optimal acquisition policy with quantity discounts and uncertain demands

Optimal acquisition policy with quantity discounts and uncertain demands

0.00 Avg rating0 Votes
Article ID: iaor20103999
Volume: 47
Issue: 9
Start Page Number: 2409
End Page Number: 2425
Publication Date: May 2009
Journal: International Journal of Production Research
Authors: ,
Keywords: programming: integer
Abstract:

We study the acquisition policy decision problem for a supply network involving one manufacturer and multiple suppliers. The manufacturer produces multiple products under uncertain demands and each supplier provides price discounts. The problem is to determine the manufacturer's acquisition policy and production levels so as to maximise the manufacturer's expected profit, subject to both the manufacturer's and suppliers' capacities. We present a mixed integer nonlinear programming (MINLP) formulation of the problem, for both single- and multiple-sourcing procurement policies. General algebraic modeling system (GAMS) and its solvers, combining external integration functions, are employed to solve the complex MINLP problem. The preliminary computation results and managerial analysis are reported.

Reviews

Required fields are marked *. Your email address will not be published.