Multi-product and multi-period inventory lot-sizing with supplier selection under quantity discount

Chirawat Woarawichai and Thanakorn Naenna

International Journal of Services and Operations Management, 2017, vol. 28, issue 2, 264-277

Abstract: In this paper, we consider a multi-product and multi-period inventory lot-sizing problem with supplier selection under quantity discount. The suppliers are able to offer all-unit quantity discount in each product. The objectives are to minimise the total inventory cost, where the cost include purchase cost of the products, ordering cost for the suppliers, holding cost for remaining inventory and transportation cost for supplier. It is assumed that demand of multiple products is known over a planning horizon. The problem is formulated as a mixed integer programming (MIP) model and is solved with optimisation package like LINGO 12. Finally, numerical example is provided to illustrate the solution procedure. 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.

Keywords: multi-product; inventory lot-sizing; supplier selection; quantity discount. (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=86329 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijsoma:v:28:y:2017:i:2:p:264-277

Access Statistics for this article

More articles in International Journal of Services and Operations Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().