IDEAS home Printed from https://ideas.repec.org/a/ids/ijlsma/v30y2018i2p179-194.html
   My bibliography  Save this article

Solving inventory lot-sizing with supplier selection under alternative quantity discounts and vehicle capacity

Author

Listed:
  • Chirawat Woarawichai
  • Thanakorn Naenna

Abstract

In this paper, we present a multi-product and multi-period inventory lot-sizing problem with supplier selection under alternative quantity discounts and vehicle capacity. Each supplier offers quantity discounts (all-units and incremental discounts) to motivate the buyer for purchasing large quantity. In addition, we consider that the capacity each vehicle of the supplier transport the products to the decision maker (buyer). The objectives are to minimise total costs, where the costs include purchase cost of the products, ordering cost for the suppliers, transportation cost for the suppliers and holding cost of the remaining inventory in each period. The problem is formulated as a mixed integer linear programming (MILP) model. Finally, a numerical example is provided to illustrate the solution procedure. The MILP model can provide a satisfactory solution with a very short elapsed runtime. The results, the buyer needs to determine what products to order in what quantities with which suppliers in which periods, in order to satisfy overall demand.

Suggested Citation

  • Chirawat Woarawichai & Thanakorn Naenna, 2018. "Solving inventory lot-sizing with supplier selection under alternative quantity discounts and vehicle capacity," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 30(2), pages 179-194.
    • Handle: RePEc:ids:ijlsma:v:30:y:2018:i:2:p:179-194
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=91961
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guo, Haidong & Wang, Shengyu & Zhang, Yu, 2021. "Supply interruption supply chain network model with uncertain demand: an application of chance-constrained programming with fuzzy parameters," LSE Research Online Documents on Economics 114936, London School of Economics and Political Science, LSE Library.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijlsma:v:30:y:2018:i:2:p:179-194. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=134 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.