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

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 desir...

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Bibliographic Details
Published in:Production planning & control 2008-03, Vol.19 (2), p.142-149
Main Author: Hassini, E.
Format: Article
Language:English
Subjects:
Discounts
inventory lot sizing
leadtime-dependent quantity discount
Linear programming
pre-negotiation
Production planning
Studies
supplier selection
Suppliers
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Summary: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.
ISSN:0953-7287
1366-5871
DOI:10.1080/09537280801896177