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Optimizing the new coordinated replenishment and delivery model considering quantity discount and resource constraints.

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Title: Optimizing the new coordinated replenishment and delivery model considering quantity discount and resource constraints.
Authors: Liu, Rui1 rliuhust316@gmail.com, Zeng, Yu-Rong1,2 zyr@hbue.edu.cn, Qu, Hui3 qhui733@gmail.com, Wang, Lin1 wanglin@hust.edu.cn
Source: Computers & Industrial Engineering. Feb2018, Vol. 116, p82-96. 15p.
Subjects: Tabu search algorithm, Constraint satisfaction, Computational complexity, Problem solving, Heuristic algorithms, Quantity discounts
Abstract: Under a global purchasing environment, more and more companies have realized that considerable cost savings can be achieved through a coordinated replenishment and delivery (CRD) strategy. A new and practical CRD model with quantity discount (D-CRD) and its extension with constraints (CD-CRD) are proposed. Several important properties of the proposed D-CRD and CD-CRD policies are presented. A heuristic based on these properties and a hybrid Tabu search algorithm is designed to obtain satisfactory solutions for D-CRD and CD-CRD. Computational results demonstrate the effectiveness and efficiency of the algorithms. Although D-CRD is more efficient than CRD, resource constraints significantly weaken the effects of quantity discount strategy, especially for large-scale problems. Moreover, constraints in the coordinated stage are more sensitive than constraints in the delivery stage. [ABSTRACT FROM AUTHOR]
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Database: Engineering Source
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Abstract:Under a global purchasing environment, more and more companies have realized that considerable cost savings can be achieved through a coordinated replenishment and delivery (CRD) strategy. A new and practical CRD model with quantity discount (D-CRD) and its extension with constraints (CD-CRD) are proposed. Several important properties of the proposed D-CRD and CD-CRD policies are presented. A heuristic based on these properties and a hybrid Tabu search algorithm is designed to obtain satisfactory solutions for D-CRD and CD-CRD. Computational results demonstrate the effectiveness and efficiency of the algorithms. Although D-CRD is more efficient than CRD, resource constraints significantly weaken the effects of quantity discount strategy, especially for large-scale problems. Moreover, constraints in the coordinated stage are more sensitive than constraints in the delivery stage. [ABSTRACT FROM AUTHOR]
ISSN:03608352
DOI:10.1016/j.cie.2017.12.014