CAPACITATED MULTIPLE ITEM ORDERING WITH INCREMENTAL QUANTITY DISCOUNTS

This paper presents a heuristic algorithm for determining order quantities for multiple items given incremental quantity discounts and a single resourse constraint. The heuristic is based on Lagrangian relaxation. The performance of the heuristic is compared, for small problems, with a procedure that generates optimal solutions. Results from computational experiments are given that demonstrate the quality and computational efficiency of the heuristic algorithm.