A Mathematical Model for an Inventory Management and Order Quantity Allocation Problem with Nonlinear Quantity Discounts and Nonlinear Price-Dependent Demand

This article focuses on solving the order quantity allocation problem for retailers. It considers factors such as quality constraints, nonlinear discounts, and price-dependent demand. By formulating it a maximization problem, aims to find best combination of suppliers out infinite solutions maximize retailer’s profit. The main contribution this research is new mathematical model that can solve constraint demand in single step. complex due number equations, their nature, various trade-offs given by market. Additionally, output includes demand, which more realistic proposed was tested using an example from recent literature showed better results than previously published solution regarding profit maximization.