A Multi-Item Inventory Model With Joint Setup And Concave Production Costs
The present paper discusses an approach to solve the joint replenishment problem in a production environment with concave production cost functions. 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 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.
|Keywords||Lipschitz optimization, concave production cost, concave-convex programming, inventory, joint setup, multi-item|
Bayindir, Z.P., Birbil, S.I., & Frenk, J.B.G.. (2004). A Multi-Item Inventory Model With Joint Setup And Concave Production Costs (No. ERS-2004-044-LIS). Report / Econometric Institute, Erasmus University Rotterdam. Retrieved from http://hdl.handle.net/1765/1535