Multiple products, multiple constraints, single period inventory problem: a hierarchical solution procedure

Abstract

This paper presents the formulation and a hierarchical solution procedure of multiple products, multiple constraints, single period inventory problem. The hierarchical procedure decomposes the problem into a number of sub-problems equal to the number of constraints sets. Each sub-problem is solved optimally by applying Lagrange multipliers and satisfying Kuhn-Tucker conditions. The experimental results show that the hierarchical procedure performs well even when there are large a number of products and constraints.