Open AccessA novel multi-item joint replenishment problem considering multiple type discounts
Author(s) -
Ligang Cui,
Yajun Zhang,
Jie Deng,
Maozeng Xu
Publication year - 2018
Publication title -
plos one
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.99
H-Index - 332
ISSN - 1932-6203
DOI - 10.1371/journal.pone.0194738
Subject(s) - joint (building) , heuristic , computer science , mathematical optimization , stochastic discount factor , reduction (mathematics) , econometrics , economics , mathematics , architectural engineering , geometry , capital asset pricing model , engineering
In business replenishment, discount offers of multi-item may either provide different discount schedules with a single discount type, or provide schedules with multiple discount types. The paper investigates the joint effects of multiple discount schemes on the decisions of multi-item joint replenishment. In this paper, a joint replenishment problem ( JRP ) model, considering three discount (all-unit discount, incremental discount, total volume discount) offers simultaneously, is constructed to determine the basic cycle time and joint replenishment frequencies of multi-item. To solve the proposed problem, a heuristic algorithm is proposed to find the optimal solutions and the corresponding total cost of the JRP model. Numerical experiment is performed to test the algorithm and the computational results of JRP s under different discount combinations show different significance in the replenishment cost reduction.