Combining Acquisition Planning with Inventory Management Under Uncertain Demand
We develop a new mixed integer nonlinear model to maximize a manufacturer's expected profit by combining strategic acquisition decisions with inventory management, where the manufacturer produces multiple products but faces uncertain demand for each product. This model also considers that suppliers provide competitive discount schemes. An iterative algorithm is developed to solve the problem. The preliminary computational results for a numerical example are reported.
inventory management acquisition decision mixed-integer nonlinear programming