A new optimization approach for supply chain management models with quantity discount consideration

Nikbakhsh Javadian, Mahmoud Khavarpour, Yashar Maali, Negar Asadian

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contribution

Abstract

Owing to the difficulty of treating nonlinear functions, in many supply chain management (SCM) models, it has been assumed that the average prices of materials, production, transportation, and inventory are constant. This assumption, however, is not practical. Vendors usually offer quantity discounts to encourage the buyers to order more, and the producer intends to discount the unit production cost if the amount of production is large. In this article, we solves a nonlinear SCM model capable of treating various quantity discount functions simultaneously, including linear, single breakpoint, step, and multiple breakpoint functions. Then, we utilize the presented linearization techniques. So, such a nonlinear model is approximated to a linear mixed 0-1 program solvable to obtain a global optimum.
Original languageEnglish
Title of host publication37th International Conference on Computers & Industrial Engineering 2007
Subtitle of host publicationproceedings
Place of PublicationLos Angeles CA
PublisherComputers and Industrial Engineering
Pages619-626
Number of pages8
Volume1
ISBN (Print)9781627486811
Publication statusPublished - 2007
Externally publishedYes
EventInternational Conference on Computers and Industrial Engineering (37th : 2007) - Alexandria, Egypt
Duration: 20 Oct 200723 Oct 2007

Conference

ConferenceInternational Conference on Computers and Industrial Engineering (37th : 2007)
CityAlexandria, Egypt
Period20/10/0723/10/07

Keywords

  • logistics
  • optimization
  • quantity discount model
  • supply chain management

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