A Variable Neighborhood Search Heuristic for Supply Chain Coordination using Dynamic Price Discounts

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.

• Record URL:
  • https://doi.org/10.1007/s13676-018-0122-2
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/21924376
• Supplemental Notes:
  • Copyright © 2018, Springer-Verlag Berlin Heidelberg and EURO - The Association of European Operational Research Societies. The contents of this paper reflect the views of the authors and do not necessarily reflect the official views or policies of the Transportation Research Board or the National Academy of Sciences.
• Authors:
  • Buhayenko, Viktoryia
  • 0000-0002-6617-0382
  • Ho, Sin C
  • Thorstenson, Anders
• Publication Date: 2018-12

Language

• English

Media Info

• Media Type: Web
• Features: References;
• Pagination: pp 363-385
• Serial:
  • EURO Journal on Transportation and Logistics
  • Volume: 7
  • Issue Number: 4
  • Publisher: SPRINGER VERLAG HEIDELBERG
  • ISSN: 2192-4376
  • EISSN: 2192-4384
  • Serial URL: http://www.springerlink.com/content/2192-4376/

Subject/Index Terms

• TRT Terms: Discount; Heuristic methods; Neighborhoods; Supply chain management
• Subject Areas: Economics; Freight Transportation; Operations and Traffic Management;

Filing Info

• Accession Number: 01691686
• Record Type: Publication
• Files: TRIS
• Created Date: Jan 28 2019 5:11PM