The joint replenishment problem with variable production costs
Bayındır, Z. P. and Birbil, Ş. İlker and Frenk, J. B. G. (2006) The joint replenishment problem with variable production costs. European Journal of Operational Research, 175 (1). pp. 622-640. ISSN 0377-2217
Official URL: http://dx.doi.org/10.1016/j.ejor.2005.06.005
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.
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