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The supplier selection problem with quantity discounts and truckload shipping


  • Mansini, Renata
  • Savelsbergh, Martin W.P.
  • Tocchella, Barbara


To minimize procurement expenditures both purchasing and transportation costs need to be considered. We study a procurement setting in which a company needs to purchase a number of products from a set of suppliers to satisfy customer demand. The suppliers offer total quantity discounts and transportation costs are based on truckload shipping rates. The goal is to select a set of suppliers so as to satisfy product demand at minimal total costs. The resulting optimization problem is strongly NP-hard. We develop integer programming based heuristics to solve the problem. Extensive computational experiments demonstrate the efficacy of the proposed heuristics and provide insight into the impact of instance characteristics on effective procurement strategies.

Suggested Citation

  • Mansini, Renata & Savelsbergh, Martin W.P. & Tocchella, Barbara, 2012. "The supplier selection problem with quantity discounts and truckload shipping," Omega, Elsevier, vol. 40(4), pages 445-455.
  • Handle: RePEc:eee:jomega:v:40:y:2012:i:4:p:445-455
    DOI: 10.1016/

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    References listed on IDEAS

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    9. E. Angelelli & R. Mansini & M. Vindigni, 2009. "Exploring greedy criteria for the dynamic traveling purchaser problem," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 17(2), pages 141-158, June.
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    Cited by:

    1. repec:eee:proeco:v:198:y:2018:i:c:p:119-132 is not listed on IDEAS
    2. Hu, Kuo-Jen & Yu, Vincent F., 2016. "An integrated approach for the electronic contract manufacturer selection problem," Omega, Elsevier, vol. 62(C), pages 68-81.
    3. Bianchessi, N. & Mansini, R. & Speranza, M.G., 2014. "The distance constrained multiple vehicle traveling purchaser problem," European Journal of Operational Research, Elsevier, vol. 235(1), pages 73-87.
    4. Zeki Ayağ & Funda Samanlioglu, 2016. "An intelligent approach to supplier evaluation in automotive sector," Journal of Intelligent Manufacturing, Springer, vol. 27(4), pages 889-903, August.
    5. repec:eee:reensy:v:159:y:2017:i:c:p:276-282 is not listed on IDEAS
    6. repec:eee:ejores:v:261:y:2017:i:3:p:903-917 is not listed on IDEAS
    7. Faiza Hamdi & Ahmed Ghorbel & Faouzi Masmoudi & Lionel Dupont, 0. "Optimization of a supply portfolio in the context of supply chain risk management: literature review," Journal of Intelligent Manufacturing, Springer, vol. 0, pages 1-26.
    8. Bertazzi, Luca & Bosco, Adamo & Laganà, Demetrio, 2015. "Managing stochastic demand in an Inventory Routing Problem with transportation procurement," Omega, Elsevier, vol. 56(C), pages 112-121.
    9. repec:spr:joinma:v:29:y:2018:i:4:d:10.1007_s10845-015-1128-3 is not listed on IDEAS
    10. Yu, Yugang & Hong, Zhaofu & Zhang, Linda L. & Liang, Liang & Chu, Chengbin, 2013. "Optimal selection of retailers for a manufacturing vendor in a vendor managed inventory system," European Journal of Operational Research, Elsevier, vol. 225(2), pages 273-284.
    11. Zhou, Yuan & Xie, Jinxing, 2014. "Potentially self-defeating: Group buying in a two-tier supply chain," Omega, Elsevier, vol. 49(C), pages 42-52.
    12. Jain, Vipul & Panchal, Gajanan B. & Kumar, Sameer, 2014. "Universal supplier selection via multi-dimensional auction mechanisms for two-way competition in oligopoly market of supply chain," Omega, Elsevier, vol. 47(C), pages 127-137.
    13. repec:spr:annopr:v:258:y:2017:i:2:d:10.1007_s10479-015-1941-2 is not listed on IDEAS
    14. Zissis, Dimitris & Ioannou, George & Burnetas, Apostolos, 2015. "Supply chain coordination under discrete information asymmetries and quantity discounts," Omega, Elsevier, vol. 53(C), pages 21-29.
    15. Sawik, Tadeusz, 2014. "Joint supplier selection and scheduling of customer orders under disruption risks: Single vs. dual sourcing," Omega, Elsevier, vol. 43(C), pages 83-95.
    16. Tan, Tarkan & Alp, Osman, 2016. "Optimal sourcing from alternative capacitated suppliers with general cost structures," Omega, Elsevier, vol. 58(C), pages 26-32.
    17. Wan, Shu-Ping & Li, Deng-Feng, 2013. "Fuzzy LINMAP approach to heterogeneous MADM considering comparisons of alternatives with hesitation degrees," Omega, Elsevier, vol. 41(6), pages 925-940.
    18. Heese, H. Sebastian, 2015. "Single versus multiple sourcing and the evolution of bargaining positions," Omega, Elsevier, vol. 54(C), pages 125-133.
    19. Manerba, Daniele & Mansini, Renata, 2012. "An exact algorithm for the Capacitated Total Quantity Discount Problem," European Journal of Operational Research, Elsevier, vol. 222(2), pages 287-300.


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