A MULTI-PERIOD MULTI-CRITERIA SUPPLIER SELECTION AND ORDER ALLOCATION MODEL UNDER DEMAND UNCERTAINTY

Open Access
Author:
Sun, Yishan
Graduate Program:
Industrial Engineering
Degree:
Master of Science
Document Type:
Master Thesis
Date of Defense:
None
Committee Members:
  • M Jeya Chandra, Thesis Advisor
Keywords:
  • order allocation
  • supplier selection
  • multi-period
  • multi-objective
  • shortage
Abstract:
In this thesis, a multi-period multiple sourcing supplier selection and order allocation model under demand uncertainty condition with shortages is built. The objective is to determine which suppliers should be selected and the order quantities of each product for each period. The problem has three objectives: minimizing the total cost over the planning horizon, minimizing the weighted average lead time over the planning horizon and minimizing the weighted average quality defect rate over the planning horizon. First, a mathematical formulation for all the three objectives is developed and then a general multi-period and multi-criteria optimization model is presented. There are two key decisions to make: 1) to choose the most favorable suppliers from a given set of suppliers to meet supplier selection criteria for various items in each period; 2) to order optimal quantities in each period for each poduct from the selected suppliers to meet the production demand. Weighted Objective method is used to generate the efficient solution by assigning weights to the three criteria. A sensitivity analysis is done to study the impact of changing the input parameters values such as initial inventory levels and maximum and minimum values of demands on the total cost objective and selection of suppliers.