Determining the retailer's replenishment policy considering multiple capacitated suppliers and price-sensitive demand
We consider a single retailer, multiple suppliers, and price sensitive demand. The objective is to maximize profit and determine order quantities for selected supplier. A mixed integer nonlinear programming formulation of the problem is provided. We determine sufficient conditions for the optimal selection of a single supplier. We also investigate the impact of supplier's capacity on the optimal sourcing strategy.
price-sensitive demand supplier selection supply chain inventory all-unit quantity discounts mixed integer nonlinear programming model