A Multi-period Multi-criteria Supplier Selection and Order Allocation Model Under Demand Uncertainty

A Multi-period Multi-criteria Supplier Selection and Order Allocation Model Under Demand Uncertainty

Author: Yishan Sun

Publisher:

Published: 2015

Total Pages:

ISBN-13:

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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.


A Multi-product, Multi-supplier, Multi-period and Multi- Price Discount Levels Supplier Selection and Order Allocation Model Under Demand Uncertainty

A Multi-product, Multi-supplier, Multi-period and Multi- Price Discount Levels Supplier Selection and Order Allocation Model Under Demand Uncertainty

Author: Swapnil Phansalkar

Publisher:

Published: 2016

Total Pages:

ISBN-13:

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In this thesis, a multi criteria decision making model for supplier selection and order allocation is developed under demand uncertainty. The primary goal of this model is to assist the buyer in making the decision regarding the selection of suppliers and allocation of order quantities to the selected suppliers to satisfy demand for each product in every time period. The multi criteria decision making model has the following three objectives: to minimize the total cost over planning horizon, to minimize the total number of quality defects and to minimize the weighted average lead time. The demand is assumed to follow normal distribution and shortages are allowed in this model. Further, each supplier is assumed to provide all unit type of price discount for each part. A mathematical formulation is done for each objective and then a general model for multiple products, multiple suppliers, multiple time periods and multiple price discount levels is developed. The multi criteria model includes the buyer's demand constraints, the supplier's capacity constraints and the supplier's price break constraints. The following decisions are to be made in this model: to select the appropriate suppliers considering the objectives of the model and to determine the optimal order quantity from the selected suppliers to satisfy the buyer's demand for each time period. This model uses weighted objective method to determine the optimal solution to the multi criteria decision making problem.


Inventory Optimization

Inventory Optimization

Author: Nicolas Vandeput

Publisher: Walter de Gruyter GmbH & Co KG

Published: 2020-08-24

Total Pages: 318

ISBN-13: 3110673940

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In this book . . . Nicolas Vandeput hacks his way through the maze of quantitative supply chain optimizations. This book illustrates how the quantitative optimization of 21st century supply chains should be crafted and executed. . . . Vandeput is at the forefront of a new and better way of doing supply chains, and thanks to a richly illustrated book, where every single situation gets its own illustrating code snippet, so could you. --Joannes Vermorel, CEO, Lokad Inventory Optimization argues that mathematical inventory models can only take us so far with supply chain management. In order to optimize inventory policies, we have to use probabilistic simulations. The book explains how to implement these models and simulations step-by-step, starting from simple deterministic ones to complex multi-echelon optimization. The first two parts of the book discuss classical mathematical models, their limitations and assumptions, and a quick but effective introduction to Python is provided. Part 3 contains more advanced models that will allow you to optimize your profits, estimate your lost sales and use advanced demand distributions. It also provides an explanation of how you can optimize a multi-echelon supply chain based on a simple—yet powerful—framework. Part 4 discusses inventory optimization thanks to simulations under custom discrete demand probability functions. Inventory managers, demand planners and academics interested in gaining cost-effective solutions will benefit from the "do-it-yourself" examples and Python programs included in each chapter.


Introduction to Computational Optimization Models for Production Planning in a Supply Chain

Introduction to Computational Optimization Models for Production Planning in a Supply Chain

Author: Stefan Voss

Publisher: Springer Science & Business Media

Published: 2003

Total Pages: 248

ISBN-13: 9783540000235

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The book begins with an easy-to-read introduction to the concepts associated with the creation of optimization models for production planning. These concepts are then applied to well-known planning models, namely mrp and MRP II. From this foundation, fairly sophisticated models for supply chain management are developed. Another unique feature is that models are developed with an eye toward implementation. In fact, there is a chapter that provides explicit examples of implementation of the basic models using a variety of popular, commercially available modeling languages.


Multi-Criteria Decision Making (MCDM) Model for Supplier Evaluation and Selection in the Supply Chain Management

Multi-Criteria Decision Making (MCDM) Model for Supplier Evaluation and Selection in the Supply Chain Management

Author: Nguyen Van Thanh

Publisher:

Published: 2020-04-30

Total Pages: 62

ISBN-13: 9781952751004

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In a market economy, choosing a supplier is a strategic decision, directly affecting to the business performance of the businesses, choosing an effective suppliers to help businesses create high quality products, low cost, meeting the demand that customers' expect, and being able to aim for sustainable development in the future. The benefits of choosing the best suppliers help businesses gain a competitive advantage in the market. However, the process of selecting suppliers is very complicated, requiring decision makers to analyze and evaluate many qualitative and quantitative criteria are conflict together to get accurate results. Thus, this book presents a mathematical model to optimize supplier's selection process, with the aim of improving products quality, timely delivery, meeting the increasing demands of customers, and ensuring reduce production costs of products. In book, the author considered main criteria including financial criteria, delivery and services factors, qualitative criteria and environmental management systems.


Decision-Making for Supply Chain Integration

Decision-Making for Supply Chain Integration

Author: Hing Kai Chan

Publisher: Springer Science & Business Media

Published: 2012-05-01

Total Pages: 262

ISBN-13: 1447140338

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Effective supply chain integration, and the tight co-ordination it creates, is an essential pre-requisite for successful supply chain management. Decision-Making for Supply Chain Integration is a practical reference on recent research in the area of supply chain integration focusing on distributed decision-making problems. Recent applications of various decision-making tools for integrating supply chains are covered including chapters focusing on: Supplier selection, pricing strategy and inventory decisions in multi-level supply chains, RFID-enabled distributed decision-making, Operational risk issues and time-critical decision-making for sensitive logistics nodes, Modelling end to end processes to improve supply chain integration, and Integrated systems to improve service delivery and optimize resource use. Decision-Making for Supply Chain Integration provides an insight into the tools and methodologies of this field with support from real-life case studies demonstrating successful application of various decision-making techniques. By covering such a range of topics in this way, Decision-Making for Supply Chain Integration is a useful reference for researchers looking to develop their knowledge or find potential new avenues of research.


Stochastic Dynamic Lot-Sizing in Supply Chains

Stochastic Dynamic Lot-Sizing in Supply Chains

Author: Timo Jannis Hilger

Publisher: BoD – Books on Demand

Published: 2015-10-01

Total Pages: 230

ISBN-13: 3738626972

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Companies frequently operate in an uncertain environment and many real life production planning problems imply volatility and stochastics of the customer demands. Thereby, the determination of the lot-sizes and the production periods significantly affects the profitability of a manufacturing company and the service offered to the customers. This thesis provides practice-oriented formulations and variants of dynamic lot-sizing problems in presence of restricted production resources and demand uncertainty. The demand fulfillment is regulated by service level constraints. Additionally, integrated production and remanufacturing planning under demand and return uncertainty in closed-loop supply chains is addressed. This book offers introductions to these problems and presents approximation models that can be applied under uncertainty. Comprehensive numerical studies provide managerial implications. The book is written for practitioners interested in supply chain management and production as well as for lecturers and students in business studies with a focus on supply chain management and operations management.


Integrated Supplier Selection and Order Allocation Incorporating Customer Flexibility

Integrated Supplier Selection and Order Allocation Incorporating Customer Flexibility

Author: Lixin Cui

Publisher: Open Dissertation Press

Published: 2017-01-26

Total Pages:

ISBN-13: 9781361312308

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This dissertation, "Integrated Supplier Selection and Order Allocation Incorporating Customer Flexibility" by Lixin, Cui, 崔麗欣, was obtained from The University of Hong Kong (Pokfulam, Hong Kong) and is being sold pursuant to Creative Commons: Attribution 3.0 Hong Kong License. The content of this dissertation has not been altered in any way. We have altered the formatting in order to facilitate the ease of printing and reading of the dissertation. All rights not granted by the above license are retained by the author. Abstract: Supplier selection and order allocation are significant decisions for a manufacturer to ensure stable material flows in a highly competitive supply chain, in particular when customers are willing to accept products with less desirable product attributes. Hence, this study develops efficient methodologies to solve optimally the integrated supplier selection and order allocation problem incorporating customer flexibility for a manufacturer producing multiple products over a multi-period planning horizon. In this research, a new fuzzy multi-attribute approach is proposed to evaluate customer flexibility which is characterized through range and response. The approach calculates the product's general utility value. This value is used by a bi-variant function which is developed to determine the retail price for the product. A new mixed integer program model describing the behavior of the basic problem is firstly developed. This basic model is the first to jointly determine: 1) type and quantity of the product variants to be offered; 2) the suppliers to be selected and orders to be allocated; and 3) inventory levels of product variants and raw materials/components. The objective is to maximize the manufacturer's total profit subject to various operating constraints. This basic problem constitutes a very complex combinatorial optimization problem that is Nondeterministic Polynomial (NP)-hard. To tackle this challenge, two new optimization algorithms, i.e., an improved genetic approach called king GA (KGA) and an innovative hybrid algorithm called (CP-SA) _I which combines the techniques of constraint programming and simulated annealing are developed to locate optimal solutions. Extensive computational experiments demonstrate the effectiveness of these algorithms and also show clearly that (CP-SA) _I outperforms KGA in terms of both solution quality and computational cost. To examine the influence of subcontracting as one widespread practice in modern production management, this study also develops a modified mathematical model. It shares some similarity with the basic model but brings additional complexity by taking into consideration subcontractors for inter-mediate components and machine capacity. Since (CP-SA) _I outperforms KGA, it is employed and modified to solve the modified problem. Hence, this study presents a new hybrid algorithm called (CP-SA) _II, to locate optimal solutions. This study also establishes a new parallel (CP-SA) _II algorithm to enhance the performance of (CP-SA) _II. This parallel algorithm is implemented on a distributed computing platform based on the contemporary Graphic Processing Unit (GPU) using the Compute Unified Device Architecture (CUDA) programming model. Extensive numerical experiments conducted clearly demonstrate that the parallel (CP-SA) _II algorithm and its serial counterpart are efficient and robust optimization tools for formulating integrated supplier selection and order allocation decisions. Sensitivity analysis is employed to study the effects of the critical parameters on the performance of these algorithms. Finally, the convergence behavior of the proposed parallel (CP-SA) _II algorithm is studied theoretically. The results prove that the search process eventually converges to the global optimum if the overall best solution is maintained over time. DOI: 10.5353/th_b4786938 Subjects: Business log


Optimization of Integrated Supply Chain Planning Under Multiple Uncertainty

Optimization of Integrated Supply Chain Planning Under Multiple Uncertainty

Author: Juping Shao

Publisher:

Published: 2015

Total Pages: 188

ISBN-13: 9783662472514

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The subject of this book is supply chain logistics planning optimization under multiple uncertainties, the key issue in supply chain management. Focusing on the strategic-alliance three-level supply chain, the model of supply chain logistics planning was established in terms of the market prices and the market requirements as random variables of manufactured goods with random expected value programming theory, and the hybrid intelligence algorithm solution model was designed. Aiming at the decentralized control supply chain, in which the nodes were unlimited expansion, the chance-constrained stochastic programming model was created in order to obtain optimal decision-making at a certain confidence level. In addition, the hybrid intelligence algorithm model was designed to solve the problem of supply chain logistics planning with the prices of the raw-materials supply market of the upstream enterprises and the prices of market demand for products of the downstream enterprises as random variables in the supply chain unit. Aimed at the three-stage mixed control supply chain, a logistics planning model was designed using fuzzy random programming theory with customer demand as fuzzy random variables and a hybrid intelligence algorithm solution was created. The research has significance both in theory and practice. Its theoretical significance is that the research can complement and perfect existing supply chain planning in terms of quantification. Its practical significance is that the results will guide companies in supply chain logistics planning in the uncertain environment.