Selection of vendors — A mixed-integer programming approach

In this paper, we propose a mixed-integer programming model to select vendors and determine the order quantities. The model considers the stochastic nature of demand, the quality of supplied parts, the cost of purchasing and transportation, the fixed cost for establishing vendors, and the cost of re...

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Published in:Computers & industrial engineering 1996-10, Vol.31 (1), p.347-350
Main Authors: Kasilingam, Raja G., Lee, Chee P.
Format: Article
Language:English
Subjects:
Applied sciences
Exact sciences and technology
Firm modelling
Integer programming
Operational research and scientific management
Operational research. Management science
Operations research
Order quantity
Studies
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cited_by cdi_FETCH-LOGICAL-c360t-da20cf4cf2693dcedd4cd8b724206094a449a8c03e1aa693e4ff8e2feb3b7a543
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description In this paper, we propose a mixed-integer programming model to select vendors and determine the order quantities. The model considers the stochastic nature of demand, the quality of supplied parts, the cost of purchasing and transportation, the fixed cost for establishing vendors, and the cost of receiving poor quality parts. The model also considers the lead time requirements for the parts.
doi_str_mv 10.1016/0360-8352(96)00148-9
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source ScienceDirect Journals
subjects Applied sciences
Exact sciences and technology
Firm modelling
Integer programming
Operational research and scientific management
Operational research. Management science
Operations research
Order quantity
Studies
title Selection of vendors — A mixed-integer programming approach
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