The PieceWiseSOS2a.xlsx Model

Purchasing with a Nonlinear Price Schedule

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We need to buy a specified amount of commodity.
Two vendors each offer their own price curve (piecewise linear).
How much should we buy from each to minimize total cost?
We use the SOS2 capability of What'sBest! to represent piecewise linear cost curves.
For each price curve, we enter the (vol, total_cost) pairs at the breakpoints.

Keywords:

Piecewise Linear | Interpolation | Non-convex Function | Linearization | SOS2 | Purchasing | Quantity Discount |