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Supplier selection and order splitting in multiple-sourcing inventory systems

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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.

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Authors and Affiliations

  1. Department of Mechanical Engineering, Shandong University, Jinan, 250061, China

    Guicong Wang, Zhaoliang Jiang, Zhaoqian Li & Wenping Liu

Authors
  1. Guicong Wang
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  2. Zhaoliang Jiang
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  3. Zhaoqian Li
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  4. Wenping Liu
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Corresponding author

Correspondence to Guicong Wang.

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Wang, G., Jiang, Z., Li, Z. et al. Supplier selection and order splitting in multiple-sourcing inventory systems. Front. Mech. Eng. China 3, 23–27 (2008). https://doi.org/10.1007/s11465-008-0016-3

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  • DOI: https://doi.org/10.1007/s11465-008-0016-3

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