Electronic Resource
Oxford, UK
:
Blackwell Publishing Ltd
Decision sciences
30 (1999), S. 0
ISSN:
1540-5915
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
In a recent article by Rosenthal, Zydiak, and Chaudhry (1995), a mixed integer linear programming model was introduced to solve the vendor selection problem for the case in which the vendor can sell items individually or as part of a bundle. Each vendor offered only one type of bundle, and the buyer could purchase at most one bundle per vendor. The model employed n(m+ 1) binary variables, where n is the number of vendors and m is the number of products they sell. The existing model can lead to a purchasing paradox: it may force the buyer to pay more to receive less. We suggest a reformulation of the same problem that (i) eliminates this paradox and reveals a more cost-effective purchasing strategy; (ii) uses only n integer variables and significantly reduces the computational workload; and (iii) permits the buyer to purchase more than one bundle per vendor.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/j.1540-5915.1999.tb01609.x
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