Resource constrained order quantities and inventory management Conference Paper uri icon


  • In this paper we present a model and solution methodology for order quantity and inventory management problems that involve resource constraints. The model formulation allows one to handle a variety of multi-item decisions such as determining order quantities, production batch sizes, number of production runs, or cycle times. Resource constraints become necessary to handle interaction among the multiple items. Examples of resource constraints include limits on inventory investment, storage space, machine capacity, or the total number of orders placed per year. When a firm has multiple suppliers, there are often constraints for each supplier, such as the total order from each supplier cannot exceed the volume of the truck. We present an efficient algorithm for solving the resource constrained order quantity and inventory management model. The algorithm requires the solution of a series of two types of subproblems: one is a nonlinear knapsack problem and the other is a nonlinear problem where the only constraints are lower and upper bounds on the variables. Preliminary computational testing of the algorithm has been performed.

published proceedings


author list (cited authors)

  • Bretthauer, K., Haylett, J., Shetty, B., & Vokurka, R.

complete list of authors

  • Bretthauer, K||Haylett, J||Shetty, B||Vokurka, R

publication date

  • January 1997