The joint replenishment problem with variable production costs

Bayindir, ZEYNEP; Birbil, S.; Frenk, J.

doi:10.1016/j.ejor.2005.06.005

The joint replenishment problem with variable production costs

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Bayindir Z. P., Birbil S. I., Frenk J. B. G.

EUROPEAN JOURNAL OF OPERATIONAL RESEARCH, vol.175, no.1, pp.622-640, 2006 (SCI-Expanded)

Publication Type: Article / Article
Volume: 175 Issue: 1
Publication Date: 2006
Doi Number: 10.1016/j.ejor.2005.06.005
Journal Name: EUROPEAN JOURNAL OF OPERATIONAL RESEARCH
Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
Page Numbers: pp.622-640
Middle East Technical University Affiliated: Yes

Abstract

This paper discusses an approach to solve the joint replenishment problem in a production environment with variable production cost. These variable production costs occur due to economies of scale in production. Under this environment, the model leads to a global optimization problem, which is investigated by using some standard results from convex analysis. Consequently, an effective and exact solution procedure is proposed. The proposed procedure is guaranteed to return a solution with a predetermined quality in terms of the objective function value. A computational study is provided to illustrate the performance of the proposed solution procedure with respect to the running time. (c) 2005 Elsevier B.V. All rights reserved.