The multi-product newsboy problem with supplier quantity discounts and a budget constraint

Guoqing Zhang

European Journal of Operational Research, 2010, vol. 206, issue 2, 350-360

Abstract: This paper considers the multi-product newsboy problem with both supplier quantity discounts and a budget constraint, while each feature has been addressed separately in the literature. Different from most previous nonlinear optimization models on the topic, the problem is formulated as a mixed integer nonlinear programming model due to price discounts. A Lagrangian relaxation approach is presented to solve the problem. Computational results on both small and large-scale test instances indicate that the proposed algorithm is extremely effective for the problem. An extension to multiple constraints and preliminary computational results are also reported.

Keywords: Inventory; Newsboy; model; Quantity; discount; Budget; constraint; Lagrangian; relaxation; Mixed; integer; nonlinear; programming (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (30)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:206:y:2010:i:2:p:350-360

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