A Multi-objective Model for Multi-supplier Selection for Multi Products

Open Access
Author:
Ren, Hong
Graduate Program:
Industrial Engineering
Degree:
Master of Science
Document Type:
Master Thesis
Date of Defense:
None
Committee Members:
  • M Jeya Chandra, Thesis Advisor
Keywords:
  • multi-supplier selection
  • multi products
  • goal programming
Abstract:
In today’s competitive environment, it is important that decision makers select appropriate suppliers for multiple products in effective supply chain management. Multiple suppliers can reduce cost, decrease production lead time, increase customer satisfaction and strengthen corporate competitiveness. The objective of this thesis is to solve a multiple-objective model of multiple-supplier selection and inventory optimization. Three objectives are considered which are minimization of total cost which consists of purchasing cost, fixed cost for choosing specific suppliers, and inventory cost, maximization of total product quality, and minimization of total number of late delivery products. In the model of this thesis, each supplier has limited capacity to supply products; purchasing budget and storage capacity of retailers are also considered. The retailer faces deterministic demand and lead time for each product from each supplier. Inventory control is an important part of the object. It is guided by the continuous (r, Q) policy, and shortage is allowed. Inventory cost in this model includes ordering cost, holding cost and shortage cost. Non-preemptive goal programming is used to solve the multiple-objective problem. A numerical example is given to illustrate the use of the developed model.