The supplier selection problem with quantity discounts and truckload shipping

Title: The supplier selection problem with quantity discounts and truckload shipping
Creator: Mansini, Renata; Savelsbergh, Martin W. P.; Tocchella, Barbara
Relation: Omega Vol. 40, Issue 4, p. 445-455
Publisher Link: http://dx.doi.org/10.1016/j.omega.2011.09.001
Publisher: Pergamon
Resource Type: journal article
Date: 2012
Description: To minimize procurement expenditures both purchasing and transportation costs need to be considered. We study a procurement setting in which a company needs to purchase a number of products from a set of suppliers to satisfy customer demand. The suppliers offer total quantity discounts and transportation costs are based on truckload shipping rates. The goal is to select a set of suppliers so as to satisfy product demand at minimal total costs. The resulting optimization problem is strongly NP-hard. We develop integer programming based heuristics to solve the problem. Extensive computational experiments demonstrate the efficacy of the proposed heuristics and provide insight into the impact of instance characteristics on effective procurement strategies.
Subject: supplier selection; quantity discounts; truckload shipping rates; integer programming
Identifier: http://hdl.handle.net/1959.13/937271
Identifier: uon:12537
Identifier: ISSN:0305-0483
Language: eng
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