Optimal Purchased Quantity for Multiple Products, Multiple Suppliers under Multiple Discount Schemes and Minimum Purchase Penalty

摘要

The selection of suppliers based on the total cost of the purchased items is formulated in this paper as a constrainted single-objective integer linear program whose certain constraints are piecewise linear functions. The model simultaneously determines the suppliers to purchase form and the purchase quantities in a multiple-item, multiple-discount scheme, multiple-supplier competitive sourcing environment. However, the suppliers require that minimum purchase quantities must be satisfied, otherwise a fine will be imposed as a penalty to the buyer. We illustrate the use of the model through a numerical example, and its computational results are reported.