scholarly journals Efficient Algorithms for a Large-Scale Supplier Selection and Order Allocation Problem Considering Carbon Emissions and Quantity Discounts

Mathematics ◽  
2020 ◽  
Vol 8 (10) ◽  
pp. 1659
Author(s):  
Shin Hee Baek ◽  
Jong Soo Kim
Keyword(s):  
Inventory Control ◽  
Supplier Selection ◽  
Control Policy ◽  
Business Environment ◽  
Allocation Problem ◽  
Nonlinear Integer Programming ◽  
Computational Time ◽  
Order Allocation ◽  
Inventory Control Policy ◽  
Item Price

This paper considers a multi-period supplier selection and order allocation problem for a green supply chain system that consists of a single buyer and multiple heterogeneous suppliers. The buyer sells multiple products to end customers and periodically replenishes each item’s inventory using a periodic inventory control policy. The periodic inventory control policy used by the buyer starts every period with an order size determination of each item and the subsequent supplier selection to fulfill the orders. Because each supplier in the system is different from other suppliers in the types of carrying items, delivery distance, item price, and quantity discount schedule, the buyer’s problem becomes a complicated optimization problem. For the described order size and supplier selection problem of the buyer, we propose a nonlinear integer programming model and develop two different algorithms to enhance the usability of the model in a real business environment with a large amount of data. The algorithms are developed to considerably cut computational time and at the same time to generate a good feasible solution to a given supplier selection and order allocation problem. Computational experiments that were conducted to test the efficiency of the algorithms showed that they can cut as much as 99% of the computational time and successfully find feasible solutions, deviating not more than 3.4% from the optimal solutions.

Dynamic supplier selection approach for mining equipment company

2019 ◽  
Vol 14 (1) ◽  
pp. 77-105 ◽  
Author(s):  
Md. Tanweer Ahmad ◽  
Sandeep Mondal
Keyword(s):  
Sensitivity Analysis ◽  
Supplier Selection ◽  
Business Environment ◽  
Spare Parts ◽  
Mixed Integer ◽  
Optimal Order ◽  
Mining Equipment ◽  
Order Allocation ◽  
Managerial Implication ◽  
Content Type

PurposeThis paper aims to address the supplier selection (SS) problem under dynamic business environments to optimize the procurement cost of spare-parts in the context of a mining equipment company (MEC). Practically, involved parameters’ value does not remain constant as planning periods due to fluctuation in the demand and their market dynamics. Therefore, dynamicity in the parameter is considered as an important factor when a company forms a responsive chain through most eligible suppliers with respect to planning periods. This area of study may be considered for their complexities to the approaches toward order-allocations with bi-products of unused and repair spare-parts.Design/methodology/approachAn integrated methodology of analytic hierarchy process (AHP) and mixed-integer non-linear programming (MILP) is implemented in the two stages during each planning periods. In the first stage, AHP is used to obtain the relative weights with respect to each spare-parts of each criterion and based on that, the ranking is evaluated in accordance with case considered. And in the second stage, MILP is formulated to find the allocations of each spare-part with two distinct approaches through Model-1 and Model-2 separately. Moreover, Model-1 and Model-2 are outlined based on the ranking and efficient parameters-value under cost, limited capacities, quality level and delay lead time respectively.FindingsThe ranking and their optimal order-allocation of potential suppliers are obtained during consecutive planning periods for both unused and repair spare-parts. Subsequently, sensitivity analysis is conducted to deduce the key nuggets with the comparison of Model-1 and Model-2 in the changing of capacity, demand and cost per spare-parts. From this analysis, it is found that suppliers who have optimal parameter settings would be better for order-allocations than ranking during the changing planning period.Practical implicationsThis paper points out the situation-specific approach for SS problem for a mining industry which often faces disruptive supplying environments. The managerial implication between ranking and parameters are highlighted through Model-1 and Model-2 by sensitivity analysis.Originality/valueIt provides useful directions for managers who are involved in the procurement of spare-parts in the mining environment. For this, suppliers are selected for order-allocation by using Model-1 and Model-2 in the dynamic business environment. The solvability of the model is presented using LINGO 17. Furthermore, the case company selected in this study can be extended to other sectors.

scholarly journals Analisis Bullwhip Effect pada Rantai Supply dengan Model Q Menggunakan Pendekatan Hadley-Within di PT. XYZ Medan

2019 ◽  
Vol 2 (4) ◽  
Author(s):  
Martha Purnama Sari Panggabean ◽  
Dimas Akmarul Putera ◽  
Nursafwah
Keyword(s):  
Supply Chain ◽  
Inventory Control ◽  
Distribution System ◽  
Control Policy ◽  
Bullwhip Effect ◽  
Product Distribution ◽  
Soft Drinks ◽  
Inventory Cost ◽  
Inventory Control Policy ◽  
Q Model

PT. XYZ adalah perusahaan yang bergerak didalam pembuatan kemasan botol minum. Pendistribusian produk dilakukan PT XYZ menggunakan data historis berdasarkan jumlah permintaan pada tahun 2013 dan 2014. Data tersebut menunjukkan bahwa terjadinya perbedaan hasil. Tahun 2013 memiliki jumlah permintaan yang lebih rendah dari tahun 2014. Informasi terdapat bahwa perlu dilakukan pengevaluasian karena didalam rantai produksi terdapat bullwhip effect. Terdapat nilai bullwhip Effect menujukan bahwa nilai bullwhip effect untuk distributor Indomaret, Carrefour, dan rantai manufakturnya masing-masing sebesar 0,5303; 0,2967, dan 0,5114. Usulan perbaikan dapat diatasi yaitu dengan model Q yang berfungsi menggendalikan persediaan pada rantai pasok dengan metodeHadley-Within. Perhitungan pengendalian persediaan untuk distributor Indomaret, Carrefour, dan rantai manufakturnya masing-masing sebesar 1,0721; 1,100; dan 1,0714. Hasil dari perhitungan menujukan bahwa terjadi keseimbangan antara penjual dan pembeli sehingga biaya pun dapat dihematkan pada PT XYZ.   PT. XYZ Medan is manufacturing company that produce soft drinks of beverages in containers. In the product distribution system at PT. XYZ Medan, found that the number of orders based on the result of forecasting in 2013 lower than actual orders at distrbutor and manufacturer in 2014. Distorsion of information on this order can evaluate the indication of bullwhip effect in supply chain. Based on the result calculation of bullwhip effect, found that the value of bullwhip effect for Indomaret distributor, Carrefour, and supply chain of manufacturer each of 0,5303; 0,2967, and 0,5114. Proposed improvements to predominate bullwhip effect that is by doing inventory control policy with Q model using Hadley-Within approach. The value of bullwhip effect aftre doing inventory control policy for Indomaret distributor, Carrefour, and supply chain of manufacturer each of 1,0721; 1,100; dan 1,0714. The value of bullwhip effect which is close to one shows that the variance between the number of the order and the number of the demand nearly balanced so as to save the inventory cost at PT. XYZ Medan.

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