An integrated lot-sizing model with supplier and carrier selection and quantity discounts considering multiple products

Document Type : Article

Authors

1 Department of Industrial Engineering, Faculty of Engineering, University of Bojnord, Bojnord, P.O. Box 94531-55111, Iran

2 Department of Industrial Engineering, Faculty of Engineering, Ferdowsi University of Mashhad, Mashhad, P.O. Box 91775-1111, Iran.

Abstract

Because of growing competition in the global markets and the vital role of suppliers in business success, the subject of supplier selection has attracted many researchers and practitioners during the recent years. In addition to the supplier selection, the order quantity discount provided by the suppliers, is considered through a new mixed-integer linear programming (MILP) model involving a manufacturer with multiple products and multiple purchasing items over multiple periods. According to the proposed model, the manufacturer purchases different amount of raw materials from selected suppliers in order to produce different products. Customers’ demands are fulfilled by minimizing the total purchase, inventory, production, and transportation costs over a multi-period planning horizon. Since the problem is NP-hard, an efficient genetic algorithm (GA) is used to solve the large-scale real-world instances. The results are compared with results from the exact approach wherever possible in order to investigate the efficiency of the algorithm.

Keywords

Main Subjects

References

  1. References:

    1. Aissaoui, N., Haouari, M., and Hassini, E. Supplier selection and order lot sizing modeling: A review", Computers & Operations Research, 34, pp. 3516{3540 (2007).
    2. Mendoza, A. and Ventura, J.A. Incorporating quantity discounts to the EOQ model with transportation costs", International Journal of Production Economics, 113, pp. 754{765 (2008).
    3. Manerba, D. and Mansini, R. An exact algorithm for the capacitated total quantity discount problem", European Journal of Operational Research, 222, pp. 287{300 (2012).
    4. Mansini, R., Tocchella, B., and Savelsbergh, M. The supplier selection problem with quantity discounts and truck load shipping", Omega, 40, pp. 445{455 (2012).
    5. Zhang, J.L. and Chen, J. Supplier selection and procurement decisions with uncertain demand, fixed selection costs and quantity discounts', Computers and Operations Research, 40, pp. 2703{2710 (2013).
    6. Nazari-Shirkouhi, S., Shakouri, H., Javadi, B., et al. Supplier selection and order allocation problem using a two-phase fuzzy multi-objective linear programming", Applied Mathematical Modelling, 37, pp. 9308{9323 (2013).
    7. Jolai, F., Neyestani, M.S., and Golmakani, H. Multiobjective model for multi-period, multi-products, supplier order allocation under linear discount", International Journal of Management Science and Engineering Management, 8, pp. 24{31 (2013). S.J. Abrishami et al./Scientia Iranica, Transactions E: Industrial Engineering 27 (2020) 2140{2156 2155
    8. Meena, P.L. and Sarmah, S.P. Multiple sourcing under supplier failure risk and quantity discount: A genetic algorithm approach", Transportation Research Part E, 50, pp. 84{97 (2013).
    9. Babi_c, Z. and Peri_c, T. Multiproduct vendor selection with volume discounts as the fuzzy multi-objective programming problem", International Journal of Production Research, 52, pp. 4315{4331 (2014).
    10. Liao, Z. and Rittscher, J. A multi-objective supplier selection model under stochastic demand conditions", International Journal of Production Economics, 105(1), pp. 150{159 (2007).
    11. Choudhary, D. and Shankar, R. Joint decision of procurement lot-size, supplier selection, and carrier selection", Journal of Purchasing and Supply Management, 19, pp. 16{26 (2013).
    12. Choudhary, D. and Shankar, R. A goal programming model for joint decision making of inventory lot- size, supplier selection and carrier selection", Computers and Industrial Engineering, 71, pp. 1{9 (2014).
    13. Rezaei, J. and Davoodi, M. Multi objective models for lot-sizing with supplier selection", International Journal of Production Economics, 130(1), pp. 77{86 (2011). 14. Lee, A.H.I., Kang, H.Y., Lai, Ch.M., et al. An integrated model for lot sizing with supplier selection and quantity discounts", Applied Mathematical Modelling, 37, pp. 4733{4746 (2013). 15. De Boer, L., Labro, E., and Morlacchi, P. A review of methods supporting supplier selection", European Journal of Purchasing and Supply Management, 7, pp. 75{89 (2001). 16. Ho, W., Xu, X., and Dey, P.K. Multi-criteria decision making approaches for supplier evaluation and selection: A literature review", European Journal of Operational Research, 202, pp. 16{24 (2010). 17. Chai, J., Liu, J.N.K., and Ngai, E.W.T. Application of decision-making techniques in supplier selection: A systematic review of literature", Expert Systems with Applications, 40, pp. 3872{3885 (2013). 18. Ghodsypour, S.H. and O'Brien, C. The total cost of logistics in supplier selection, under conditions of multiple sourcing, multiple criteria and capacity constraint", International Journal of Production Economics, 73(1), pp. 15{27 (2001). 19. Basnet, C. and Leung, J.M.Y. Inventory lot-sizing with supplier selection", Computers and Operations Research, 32, pp. 1{14 (2005). 20. Rezaei, J. and Davoodi, M. A joint pricing, lot-sizing, and supplier selection model", International Journal of Production Research, 50(16), pp. 4524{4542 (2012). 21. Mendoza, A. and Ventura, J.A. Analytical models for supplier selection and order quantity allocation", Applied Mathematical Modelling, 36, pp. 3826{3835 (2012). 22. Senyigit, E. The optimization of lot sizing with supplier selection problem in multi-echelon defective supply chain network", Mathematical and Computer Modelling of Dynamical Systems, 18, pp. 273{286 (2012). 23. Aliabadi, D.E., Kaazemi, A., and Pourghannad, B. A two-level GA to solve an integrated multi-item supplier selection model", Applied Mathematics and Computation, 219, pp. 7600{7615 (2013). 24. Ventura, J.A., Valdebenito, V.A., and Golany, B. A dynamic inventory model with supplier selection in a serial supply chain structure", European Journal of Operational Research, 230, pp. 258{271 (2013). 25. Kang, H.Y. and Lee, A.H.I. A stochastic lot-sizing model with multi-supplier and quantity discounts", International Journal of Production Research, 51, pp. 245{263 (2013). 26. Gorji, M.H., Setak, M., and Karimi, H. Optimizing inventory decisions in a two-level supply chain with order quantity constraints", Applied Mathematical Modelling, 38, pp. 814{827 (2014). 27. Cardenas-Barron, L.E., Gonzalez-Velarde, J.L., and Trevino-Garza, G. A new approach to solve the multiproduct multi-period inventory lot sizing with supplier selection problem", Computers and Operations Research, 64, pp. 225{232 (2015). 28. Zaheri, F., Zandieh, M., and Taghavifard, M.T. Bilevel programming for supplier selection under quantity discount policy", Scientia Iranica, E, 24(4), pp. 2095{2104 (2017). 29. Ghaniabadi, M. and Mazinani, A. Dynamic lot sizing with multiple suppliers, backlogging and quantity discounts", Computers and Industrial Engineering, 110, pp. 67{74 (2017). 30. Alfares, H.K. and Turnadi, R. Lot sizing and supplier selection with multiple items, multiple periods, quantity discounts, and backordering", Computers and Industrial Engineering, 116, pp. 59{71 (2018). 31. Suriyan, S. and Rungreunganun, V. Multi product dynamic lot-sizing with supplier selection under quantity discount and budget constraints", International Journal of Applied Engineering Research, 13(2), pp. 1373{1380 (2018). 32. Kanchanaruangrong, N. and Woarawichai, C. Modeling and solving of multi-product inventory lot-sizing with supplier selection under quantity discounts", International Journal of Applied Engineering Research, 13(10), pp. 8708{8713 (2018). 33. Zaheri, F., Zandieh, M., Taghavifard, M.T., et al. A bi-level programming model to solve supplier selection and lot-sizing problem addressing quantity discounts and transportation cost", Industrial Engineering and Management Systems, 17(2), pp. 267{280 (2018). 34. Dail, Z. and Zheng, X. Design of close-loop supply chain network under uncertainty using hybrid genetic algorithm: a fuzzy and chance-constrained programming model", Computers and Industrial Engineering, 88, pp. 444{457 (2015). 2156 S.J. Abrishami et al./Scientia Iranica, Transactions E: Industrial Engineering 27 (2020) 2140{2156 35. Hajikhani, A., Khalilzadeh, M. and Sadjadi, S.J. A fuzzy multi-objective multi-product supplier selection and order-allocation problem in supply chain under coverage and price considerations: An urban agricultural case study", Scientia Iranica, E, 25(1), pp. 431{ 439 (2018). 36. Rabieh, M., Rafsanjani, A.F., Babaei, L., et al. Sustainable supplier selection and order allocation: an integrated Delphi method, fuzzy TOPSIS and multi-objective programming model", Scientia Iranica, E, 26(4), pp. 2524{2540 (2019). DOI: 10.24200/SCI.2018.5254.1176
Scientia Iranica
Volume 27, Issue 4
Transactions on Industrial Engineering (E)
July and August 2020
Pages 2140-2156

Files

Share

How to cite

Statistics