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The multi-product newsboy problem with supplier quantity discounts and a budget constraint. (English) Zbl 1188.90022
Summary: 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.
MSC:
90B05Inventory, storage, reservoirs
90C30Nonlinear programming
90C11Mixed integer programming