Supplier selection and order splitting in multiple-sourcing inventory systems

2008, Volume 3, Issue 1

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Frontiers of Mechanical Engineering >> 2008, Volume 3, Issue 1 doi: 10.1007/s11465-008-0016-3

Supplier selection and order splitting in multiple-sourcing inventory systems

Department of Mechanical Engineering, Shandong University;

Available online: 2008-03-05

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Abstract

Supplier selection and inventory control are critical decision processes in single-item multiple-supplier systems. An integer linear programming model is proposed to help managers determine the reorder level, choose the best suppliers, and place the optimum order quantities so that the total average inventory cost is minimum, and constraints of supplier ability, quality, and demand are considered. An algorithm combining the branch-bound algorithm and enumeration algorithm is developed to solve the problems. Application of the proposed model in an automobile industry shows that it is effective.

Keywords

automobile industry ; branch-bound algorithm ; selection ; single-item multiple-supplier ; effective

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