On the determination of optimal price break procurement policies

Abstract

The concave case (the case of economies of scale) associated with both Cases I and II will be studied both from a mathematical point of view and from the standpoint of applying two computational algorithms to obtain the optimum solution. The advantages of the computational procedures over the method of total enumeration will be demonstrated for several test problems by using a computer program to enumerate all feasible solutions and then to apply the simplifications called for by these algorithms to demonstrate what the savings would have been if these techniques had been applied