Loading...

Supplier Selection and Order Lot Sizing under Volume Discount Environments in a Supply Chain Using Multi Criteria Decision Making Approach

Hadian, Hengameh | 2009

541 Viewed
  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 40095 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial Engineering
  6. Advisor(s): Eshraghniaye Jahromi, Abdolhamid
  7. Abstract:
  8. Traditionally, supplier selection should simultaneously take into account numerous heterogeneous criteria and then is a tedious task for the purchasing decision makers. The global supplier selection problem is more complex than domestic one and it needs more critical analysis. It becomes especially complicated when quantity discounts are considered at the same time. Under such manner, most studies often formulate such a problem as a Multi-Objective Linear Programming (MOLP) problem, and then scale it down to a Mixed Integer Programming (MIP) problem to handle the inherited multi-objectives simultaneously. However, this approach often neglects to consider scaling and subjective weighting issues. In order to ease the problem mentioned above and to obtain a more reasonable compromise solution for allocating order quantities among suppliers, an integration of analytical hierarchy process and linear integer and multi-objective programming is proposed in this study. Therefore, we identify and discuss some of the important and critical decision criteria including risk factors for the development of an efficient system for global supplier selection. Then after a mathematical model is introduced which consider all-unit cost discount through multi-objective formulation for single item purchasing problem. In addition, constraints such as; quantity discounts, capacity, and budget are taken into consideration in the model. Finally a solution methodology is presented to solve the multi-objective model. The proposed model can provide not only a framework for the organization to select the global suppliers and allocate order quantities among them, but also has the capability to deploy the organization’s strategy to its suppliers. Several illustrated problems and sensitivity analysis are presented to demonstrate the proposed model and to illuminate two kinds of attitudes for decision makers
  9. Keywords:
  10. Supplier Selection ; Multicriteria Decision Making ; Multi Objective Programming ; Supply Chain ; Analytical Hierarchy Process (AHP) ; Order Allocation ; Quantity Discount

 Digital Object List

 Bookmark

No TOC