Inventory lot-sizing with supplier selection

This paper presents a multi-period inventory lot-sizing scenario, Where there are multiple products and multiple suppliers. We consider a situation where the demand of multiple discrete products is known over a planning horizon., Each of these products can be sourced from a set of approved suppliers, a supplier-dependent transaction cost applying for each period in which an order is placed on a supplier. A product-dependent holding cost per period applies for each product in the inventory that is carried across a period in the planning horizon. The decision maker needs to decide what products to order in what quantities with which suppliers in which periods. An enumerative search algorithm and a heuristic are presented to address the problem. (C) 2003 Elsevier Ltd. All rights reserved.