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The concave cost supply problem
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DOI：10.1016/S0377-2217(02)00407-1.png)
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Abstract
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This paper is divided in two parts. In the first part, we consider the case where several providers feed a single manufacturing unit periodically in order to satisfy a given demand. The cost incurred when a provider feeds the manufacturing unit is a concave function of the quantity delivered. Furthermore, each provider either delivers a quantity that ties between a minimum and maximum value or do not deliver anything. We are introducing some properties of an optimal solution and derive a heuristic algorithm from these properties. A numerical example illustrates this approach. In the second part of the paper, we consider the case where several providers feed periodically several manufacturing units in order to satisfy given demands. A heuristic algorithm is proposed. The results provided by this algorithm are compared with the optimal solution in the case when the costs are linear for a strictly positive quantity and equal to zero otherwise. (C) 2002 Elsevier Science B.V. All rights reserved.
Keywords:
assignment
concave cost
heuristic
supply
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