Browsing by Subject "Economic order quantity"

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    Assortment planning under non-linear cost structures
    (2019-04) Shams, Farzad
    We first consider the assortment optimization problem with fixed product costs under the Mixtures of Multinomials (MMNL) Model. The problem is NP-hard even under the Multinomial Logit Model and the existing literature focuses on developing heuristics and bounds. We develop a conic integer programming formulation for the problem and valid inequalities to strengthen the formulation. We show that this approach can be used to solve instances that are very large { sizes beyond which it would be very difficult to accurately estimate parameters of the choice model { in a short amount of time, eliminating the need to develop and implement specialized algorithms for the problem. We also study the assortment planning problem where the inventory and replenishment costs are considered using the Economic Order Quantity model and the customers' choice is governed by the MMNL model. We show that the problem is NP-hard and propose a conic integer program for this problem. Our numerical experiments show that moderately sized instances can be solved in reasonable times and McCormick inequalities are effective in tightening the formulation.
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    The effect of continuous price change in the EOQ
    (Pergamon Press, 1992) Erel, E.
    The sensitivity of the basic economic order quantity (EOQ) model to continuous purchase price changes is explored. The phenomenon of continuous price changes exists in several countries and it is not likely to improve. The paper shows that using the conventional EOQ can be quite costly and far from optimal, if the holding cost rate is determined erroneously by ignoring the price change.
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    A private contributions game for joint replenishment
    (2012) Körpeoǧlu, E.; Şen, A.; Güler, K.
    We study a non-cooperative game for joint replenishment by n firms that operate under an EOQ-like setting. Each firm decides whether to replenish independently or to participate in joint replenishment, and how much to contribute to joint ordering costs in case of participation. Joint replenishment cycle time is set by an intermediary as the lowest cycle time that can be financed with the private contributions of participating firms. We characterize the behavior and outcomes under undominated Nash equilibria.