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Multi-period multi-product acquisition planning with uncertain demands and supplier quantity discounts

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  • Zhang, Guoqing
  • Shi, Jianmai
  • Chaudhry, Sohail S.
  • Li, Xindan

Abstract

In this paper, we address a multi-period multi-product acquisition planning problem where the retailer faces uncertain demand for the products and the suppliers provide all-unit quantity discounts. The problem is an extension of single period constrained newsvendor problem, which considers both the supplier discounts and multiple periods. We formulate the problem as a mixed integer nonlinear programming model and develop a Lagrangian relaxation based approach. Efficient solution procedures are presented to solve the decomposed sub-problems that are based on the properties of the problem. Computational results show that the Lagrangian method can quickly obtain very good solutions.

Suggested Citation

  • Zhang, Guoqing & Shi, Jianmai & Chaudhry, Sohail S. & Li, Xindan, 2019. "Multi-period multi-product acquisition planning with uncertain demands and supplier quantity discounts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 132(C), pages 117-140.
    • Handle: RePEc:eee:transe:v:132:y:2019:i:c:p:117-140
    DOI: 10.1016/j.tre.2019.11.005
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