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Material Ordering in a Deterministic Time-Phased Demand Environment with All-Units Discount in Purchasing

Mirmohammadi, Hamid | 2009

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  1. Type of Document: Ph.D. Dissertation
  2. Language: Farsi
  3. Document No: 39649 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Shadrokh, Shahram
  7. Abstract:
  8. More than 60% of sales account for materials, and so the roles and responsibilities of the material managers have been recognized as more important within a firm or in a large scale project than before. However, in many purchasing situations, different considerations conflict with one another. In these situations material planning plays an essential role in the total cost minimization process. Here, the optimal material ordering policy for an item in a deterministic time-phased demand environment with all-units discount in purchasing is considered. Based on proven properties of the optimal order policy, a tree search procedure is designed to construct sequences of orders in the optimal policy. Some useful fathoming rules have been proven to make this branch and bound algorithm very efficient. To compare the performance of this algorithm in the existing optimal algorithms, an experimental design with various environments has been developed. The computational complexity of the developed algorithm is also analyzed and it is shown that this algorithm has a polynomial time complexity with respect to the number of periods in the planning horizon. Finally, the assumption of the resale possibility has been added to the base model and the algorithm is modified to compute the optimal order policy for the new model.
  9. Keywords:
  10. Purchase ; All-Units Discount ; Branch and Bound Method ; Lot Size ; Rooted Tree Graph ; Time Complexity

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