A Two-Level Purchase Problem for Food Retailing in Japan

Masatoshi Sakawa, Ichiro Nishizaki, Takeshi Matsui, Tomohiro Hayashida

Faculty of Engineering, Hiroshima University, Higashi-Hiroshima, Japan.

DOI: 10.4236/ajor.2012.24057                

Abstract

In this paper, we deal with a purchase problem for food retailing, and formulate a two-level linear programming problem with a food retailer and a distributer. The food retailer deals with vegetables and fruits which are purchased from the distributer; the distributer buys vegetables and fruits ordered from the food retailer at the central wholesale markets in several cities, and transports them by truck from each of the central wholesaler markets to the food retailer’s storehouse. We solve the two-level linear programming problem in which the profits of the food retailer and the distributer are maximized.

Keywords

Purchase Problem; Food Retailing; Stackelberg Solution; Two-Level Linear Programming Problem

Conflicts of Interest

The authors declare no conflicts of interest.

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