A Mixed-Integer Optimization Formulation for Buyers Formation

Dávila-Gálvez, Sebastián; Labbé, Martine; Marianov, Vladimir; Ordoñez, Fernando; Semet, Frédéric

Document type :

Pré-publication ou Document de travail

DOI :

10.2139/ssrn.4345341

Title :

A Mixed-Integer Optimization Formulation for Buyers Formation

Author(s) :

Dávila-Gálvez, Sebastián [Auteur]
Instituto de Sistemas Complejos de Ingeniería [ISCI]
Universidad de Chile = University of Chile [Santiago] [UCHILE]
Labbé, Martine [Auteur]
Integrated Optimization with Complex Structure [INOCS]
Marianov, Vladimir [Auteur]
Pontificia Universidad Católica de Chile [UC]
Ordoñez, Fernando [Auteur]
Universidad de Chile = University of Chile [Santiago] [UCHILE]
Instituto de Sistemas Complejos de Ingeniería [ISCI]
Semet, Frédéric [Auteur]
Instituto de Sistemas Complejos de Ingeniería [ISCI]
Integrated Optimization with Complex Structure [INOCS]

Publication date :

2023

English keyword(s) :

Coalition formation MIP Benders decomposition
Coalition formation
MIP
Benders decomposition

HAL domain(s) :

Informatique [cs]

English abstract : [en]

Companies frequently offer wholesale prices for their products that decrease with the number of purchased items. However, single buyers may not be willing or able to purchase large quantities of a single item. Nevertheless, ...
Show more >Companies frequently offer wholesale prices for their products that decrease with the number of purchased items. However, single buyers may not be willing or able to purchase large quantities of a single item. Nevertheless, consumers can form groups to purchase at wholesale prices, obtaining bargaining power. This practice can be extended from single products to bundles. We propose a mathematical model to create groups of buyers wishing to purchase product bundles optimally. Mixed-integer programming formulations are presented for the cases of non-increasing price and step price functions. A Benders decomposition formulation is proposed for step price functions to solve large instances. Computational experiments show the performance of the method for synthetic instances.Show less >

Language :

Anglais

Collections :