Abstract
The considered problem consists of product delivery from a set of providers to the manufacturing units (single unit and single planning period in our case). The cost function is concave. Given the lower and upper bounds on the shipment size for each provider, the demand of the manufacturing unit has to be satisfied. In this chapter it is shown that this optimisation problem is NP-hard even to find a feasible solution to this problem. Considering the problem in integer programming formulation we propose a pseudo-polynomial algorithm, using the dynamic programming technique. Some possible approaches to solving the problem with multiple manufacturing units are discussed.
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Chauhan, S.S., Eremeev, A., Kolokolov, A., Servakh, V. (2005). Concave Cost Supply Management for Single Manufacturing Unit. In: Dolgui, A., Soldek, J., Zaikin, O. (eds) Supply Chain Optimisation. Applied Optimization, vol 94. Springer, Boston, MA. https://doi.org/10.1007/0-387-23581-7_12
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DOI: https://doi.org/10.1007/0-387-23581-7_12
Publisher Name: Springer, Boston, MA
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