Title

Allocating Procurement to Capacitated Suppliers with Concave Quantity Discounts

Document Type

Article

Publication Date

1-2008

Publication Title

Operations Research Letters

DOI

10.1016/j.orl.2007.04.001

Abstract

We consider a procurement problem where suppliers offer concave quantity discounts. The resulting continuous knapsack problem involves the minimization of a sum of separable concave functions. We identify polynomially solvable special cases of this NP-hard problem, and provide a fully polynomial-time approximation scheme for the general problem.