Department of Economics and Business Economics

A variable neighborhood search heuristic for supply chain coordination using dynamic price discounts

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A variable neighborhood search heuristic for supply chain coordination using dynamic price discounts. / Buhayenko, Viktoryia; Ho, Sin C.; Thorstenson, Anders.

In: EURO Journal on Transportation and Logistics, Vol. 7, No. 4, 2018, p. 363-385.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

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Author

Buhayenko, Viktoryia ; Ho, Sin C. ; Thorstenson, Anders. / A variable neighborhood search heuristic for supply chain coordination using dynamic price discounts. In: EURO Journal on Transportation and Logistics. 2018 ; Vol. 7, No. 4. pp. 363-385.

Bibtex

@article{40358cf907bd4374ba77adaa0b2b2d6d,
title = "A variable neighborhood search heuristic for supply chain coordination using dynamic price discounts",
abstract = "This research studies the problem of supply chain coordination using temporary price discounts. The supplier decides how much discount should be introduced in each period to each of the customers, aiming to maximize its profit, while giving the customers the incentive to order in the desired periods. To solve this problem, a variable neighborhood search is introduced. The results of computational experiments indicate that the variable neighborhood search outperforms the mixed integer-based heuristic introduced earlier in the literature for this problem. Our metaheuristic procedure found the optimal solution for small instances in more than 80% of the cases. Moreover, an advantage of this metaheuristic is the significantly shorter computing time that allows applying it to larger instances.",
keywords = "Discounts, Metaheuristics, Variable neighborhood search, Supply chain coordination, Dynamic lot sizing, JOINT REPLENISHMENT PROBLEM, LOT-SIZING PROBLEM, QUANTITY DISCOUNTS, MODEL",
author = "Viktoryia Buhayenko and Ho, {Sin C.} and Anders Thorstenson",
year = "2018",
doi = "10.1007/s13676-018-0122-2",
language = "English",
volume = "7",
pages = "363--385",
journal = "EURO Journal on Transportation and Logistics",
issn = "2192-4376",
publisher = "Springer",
number = "4",

}

RIS

TY - JOUR

T1 - A variable neighborhood search heuristic for supply chain coordination using dynamic price discounts

AU - Buhayenko, Viktoryia

AU - Ho, Sin C.

AU - Thorstenson, Anders

PY - 2018

Y1 - 2018

N2 - This research studies the problem of supply chain coordination using temporary price discounts. The supplier decides how much discount should be introduced in each period to each of the customers, aiming to maximize its profit, while giving the customers the incentive to order in the desired periods. To solve this problem, a variable neighborhood search is introduced. The results of computational experiments indicate that the variable neighborhood search outperforms the mixed integer-based heuristic introduced earlier in the literature for this problem. Our metaheuristic procedure found the optimal solution for small instances in more than 80% of the cases. Moreover, an advantage of this metaheuristic is the significantly shorter computing time that allows applying it to larger instances.

AB - This research studies the problem of supply chain coordination using temporary price discounts. The supplier decides how much discount should be introduced in each period to each of the customers, aiming to maximize its profit, while giving the customers the incentive to order in the desired periods. To solve this problem, a variable neighborhood search is introduced. The results of computational experiments indicate that the variable neighborhood search outperforms the mixed integer-based heuristic introduced earlier in the literature for this problem. Our metaheuristic procedure found the optimal solution for small instances in more than 80% of the cases. Moreover, an advantage of this metaheuristic is the significantly shorter computing time that allows applying it to larger instances.

KW - Discounts

KW - Metaheuristics

KW - Variable neighborhood search

KW - Supply chain coordination

KW - Dynamic lot sizing

KW - JOINT REPLENISHMENT PROBLEM

KW - LOT-SIZING PROBLEM

KW - QUANTITY DISCOUNTS

KW - MODEL

U2 - 10.1007/s13676-018-0122-2

DO - 10.1007/s13676-018-0122-2

M3 - Journal article

VL - 7

SP - 363

EP - 385

JO - EURO Journal on Transportation and Logistics

JF - EURO Journal on Transportation and Logistics

SN - 2192-4376

IS - 4

ER -