Scientia Iranica

Scientia Iranica

An integrated model for supplier location-selection & order allocation under capacity constraints in an uncertain environment

Authors
Fatemeh Ranjbar Tezenji 1
Mohammad Mohammadi 2
Seyed Hamid Reza Pasandideh
Mehrdad Nouri Koupaei
1 Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran, Iran
2 Kharazmi University
10.24200/sci.2016.4008
Abstract
Facility/supplier location-allocation and supplier selection-order allocation are two of the most important decisions for both designing and operation supply chains. Conventionally these two issues will be discussed separately. Due to similarity and relationship between these issues, in this paper we investigate an integrated model for supplier location-selection and order allocation problem in supply chain management (SCM). The objective function is set in such a way that the establishment costs, inventory-related costs, and transportation costs as quantitative criteria have been minimized. As regards, the costs are uncertainty, therefore we have considered them stochastic. This paper developed a bi-objective model for optimization of the mean and variance of costs. Also, the capacities of supplier are limited. This mixed integer nonlinear program solved with two meta-heuristics methods: genetic algorithm and simulated annealing. Finally, these two methods compared in terms of both solution quality and computational time. To obtain a high degree of validity and reliability GAMS software and meta-heuristic results in small sizes compared.
Keywords
location-allocation
Supplier selection
Inventory management
Multi-objective problem
Meta-Heuristic
Multiple Attribute Decision Making (MADM)
Scientia Iranica
Volume 23, Issue 6 - Serial Number 6
Transactions on Industrial Engineering (E)
December 2016
Pages 3009-3025

  • Receive Date 17 January 2015
  • Accept Date 27 July 2017