Highlights Extend the single period multi-product newsvendor problem to multi-period. Present a novel MINLP model incorporating the supplier quantity discounts for the problem. Develop a novel and very effective Lagrangian relaxation heuristic for large scale problems. Present the computational results for the problems up to 1000 products. Provide insights of the impacts of discounts, capacity, demand variance and patterns.
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.
Multi-period multi-product acquisition planning with uncertain demands and supplier quantity discounts
2019-11-05
24 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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