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

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

Transportation Research Part E: Logistics and Transportation Review, 2019, vol. 132, issue C, 117-140

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.

Keywords: Multi-period; Supplier discount; Newsvendor; Acquisition; Lagrangian relaxation (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (7)

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DOI: 10.1016/j.tre.2019.11.005

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