The main aim of this paper is to derive the mathematical formulation to device an optimal purchasing policy for the service providing agency. An attempt has been made to maximize the output function of an agency subject to a nonlinear budget constraint by assuming that the agency gets price...

Using method of Lagrange multipliers and applying first-order necessary conditions as well as second-order sufficient conditions for maximization, an attempt has been made to maximize an output of an agency subject to a nonlinear budget constraint by assuming that the agency gets price discounts...