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A branch and bound algorithm for the dynamic quantity discount lot size problem with resale
Mirmohammadi, S. H ; Sharif University of Technology | 2008
367
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- Type of Document: Article
- Publisher: 2008
- Abstract:
- This paper presents an optimal algorithm based on Branch and Bound approach for determining lot sizes for purchased component in Material Requirement Planning (MRP) environments with deterministic time-phased demand and constant ordering cost with zero lead time. Backlog is not permitted and the unit purchasing price depends on the quantity of an order and resale of the excess is possible at the ordering time. We assume an all-units discount system with single price break point. Based on proven properties of an optimal order policy, a tree search procedure is designed to construct the sequences of orders and resales amount in optimal order policy. Some useful fathom rules have been proven to make the algorithm very efficient. Copyright © (2008) by Computers & Industrial Engineering
- Keywords:
- All-units discount ; Branch-and-bound algorithms ; Branch-and-bound approaches ; Lot size ; Material requirement planning ; Optimal ordering policy ; Quantity discount ; Resale ; Algorithms ; Branch and bound method ; Costs ; Industrial engineering ; Linear programming ; Purchasing ; Sales
- Source: 38th International Conference on Computers and Industrial Engineering 2008, Beijing, 31 October 2008 through 2 November 2008 ; Volume 1 , 2008 , Pages 3-11 ; 9781627486828 (ISBN)
- URL: https://sciexplore.ir/Documents/Details/536-518-985-370