A Model for Allocating Orders to Suppliers in Case of Quantity Discounts
الموضوعات :Amir Amini 1 , Alireza Alinezhad 2 , Behzad Nourizad 3
1 - MSc. Graduate of Industrial Engineering, Alghadir institute of higher education, Tabriz, Iran
2 - Associate Professor, Department of Industrial Engineering, Faculty of Industrial and Mechanical Engineering, Qazvin branch, Islamic Azad University, Qazvin, Iran.
3 - PhD student of industrial engineering, science and research branch, Islamic Azad University, Tehran, Iran
الکلمات المفتاحية: Supplier selection, Order allocation, Volume discount, Multi-criteria and Multi-Objective decision making,
ملخص المقالة :
One of the most important activities in the management of input items of a company is focusing on the process of purchasing, supplier selection and allocating order to suppliers. Decisions about supplier selection due to simultaneously taking inconsistent and diverse issues into account in a wide range of strategic to operational factors, and from quantitative to qualitative criteria will be complex by nature. In order to select the best suppliers it is necessary to make a trade-off between these tangible and intangible factors some of which may conflict. When business volume discounts exist, this problem becomes more complicated. In this paper a multi-objective model for order allocation under volume discount conditions is presented. In this context, suppliers offer price discounts on total business volume. A solution methodology is presented to solve the multi-objective model, and the model is illustrated using a numerical example. Studying various combinations of constraints such as capacity, timely delivery, disadvantages and cost, taking into account quantity discounts, considering the weight of the suppliers in order allocation and integration of these cases with each other, have made the current research quite unique.
Aguezzoul, A., & Ladet, P. (2004, April). A nonlinear multi-objective approach for the supplier selection taking into account transportation. In International conference on Multi Objective Programming and Goal Programming “New Trends and Applications (pp. 14-16).
Amid, A., Ghodsypour, S. H., & O’Brien, C. (2006). Fuzzy multiobjective linear model for supplier selection in a supply chain. International Journal of production economics, 104(2), 394-407.
Ayhan, M. B., & Kilic, H. S. (2015). A two stage approach for supplier selection problem in multi-item/multi-supplier environment with quantity discounts. Computers & Industrial Engineering, 85, 1-12.
Benton, W. C., & Krajewski, L. (1990). Vendor performance and alternative manufacturing environments. Decision Sciences, 21(2), 403-415.
Çebi, F., & Otay, İ. (2016). A two-stage fuzzy approach for supplier evaluation and order allocation problem with quantity discounts and lead time. Information Sciences, 339, 143-157.
Chen, C. T., Lin, C. T., & Huang, S. F. (2006). A fuzzy approach for supplier evaluation and selection in supply chain management. International journal of production economics, 102(2), 289-301.
Christopher, M. (1998). Logistics and Supply Chain Management: Strategies for Reducing Cost and Improving Service Financial Times: Pitman Publishing. London, 1998 ISBN 0 273 63049 0 (hardback) 294+ 1× pp.
Croom, S., Romano, P., & Giannakis, M. (2000). Supply chain management: an analytical framework for critical literature review. European journal of purchasing & supply management, 6(1), 67-83.
Dağdeviren, M., & Yüksel, İ. (2010). A fuzzy analytic network process (ANP) model for measurement of the sectoral competititon level (SCL). Expert systems with applications, 37(2), 1005-1014.
Demirtas, E. A., & Ustun, O. (2009). Analytic network process and multi-period goal programming integration in purchasing decisions. Computers & Industrial Engineering, 56(2), 677-690.
Dickson, G. W. (1966). An analysis of vendor selection and the buying process. journal of Purchasing, 2(1), 5-17.
Ebrahim, R. M., Razmi, J., & Haleh, H. (2009). Scatter search algorithm for supplier selection and order lot sizing under multiple price discount environment. Advances in Engineering Software, 40(9), 766-776.
Ghodsypour, S. H., & O'Brien, C. (1998). A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming. International journal of production economics, 56, 199-212.
Hong, J. D., & Hayya, J. C. (1992). Just-in-time purchasing: single or multiple sourcing?. International Journal of Production Economics, 27(2), 175-181.
Li, C. C., Fun, Y. P., & Hung, J. S. (2004). A new measure for supplier performance evaluation. IIE transactions, 29(9), 753-758.
Lin, R. H. (2009a). An integrated FANP–MOLP for supplier evaluation and order allocation. Applied Mathematical Modelling, 33(6), 2730-2736.
Lin, R. H. (2009b). Potential use of FP-growth algorithm for identifying competitive suppliers in SCM. Journal of the Operational Research Society, 60(8), 1135-1141.
Lin, R. H., Chuang, C. L., Liou, J. J., & Wu, G. D. (2009). An integrated method for finding key suppliers in SCM. Expert Systems with Applications, 36(3), 6461-6465.
Mendoza, A. (2007). Effective methodologies for supplier selection and order quantity allocation. The Pennsylvania State University.
Mikhailov, L., & Singh, M. G. (2003). Fuzzy analytic network process and its application to the development of decision support systems. IEEE Transactions on Systems, Man, and Cybernetics, Part C (Applications and Reviews), 33(1), 33-41.
Nydick, R. L., & Hill, R. P. (1992). Using the analytic hierarchy process to structure the supplier selection procedure. Journal of supply chain management, 28(2), 31-36.
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2004). Managing The Supply Chain: Definitive Guide. Tata McGraw-Hill Education.
Sodenkamp, M. A., Tavana, M., & Di Caprio, D. (2016). Modeling synergies in multi-criteria supplier selection and order allocation: An application to commodity trading. European Journal of Operational Research, 254(3), 859-874.
Songhori, M. J., Tavana, M., Azadeh, A., & Khakbaz, M. H. (2010). A supplier selection and order allocation model with multiple transportation alternatives. The International Journal of Advanced Manufacturing Technology, 52(1-4), 365-376.
Spekman, R. E. (1988). Perceptions of strategic vulnerability among industrial buyers and its effect on information search and supplier evaluation. Journal of Business Research, 17(4), 313-326.
Thompson, K. N. (1990). Vendor profile analysis. Journal of Supply Chain Management, 26(1), 11-18.
Thompson, K. N. (1991). Scaling evaluative criteria and supplier performance estimates in weighted point prepurchase decision models. Journal of Supply Chain Management, 27(1), 27-36.
Thompson, K., Mitchell, H., & Knox, S. (1998). Organisational buying behaviour in changing times. European Management Journal, 16(6), 698-705.
Timmerman, E. (1986). An approach to vendor performance evaluation. Journal of Supply Chain Management, 22(4), 2-8.
Ustun, O., & Demı, E. A. (2008). An integrated multi-objective decision-making process for multi-period lot-sizing with supplier selection. Omega, 36(4), 509-521.
Wang, G. (2001). Theory and knowledge acquisition of rough sets. Xi'an Jiao tong University Publication.
Wang, T. Y., & Yang, Y. H. (2009). A fuzzy model for supplier selection in quantity discount environments. Expert Systems with Applications, 36(10), 12179-12187.
Weber, C. A., Current, J. R., & Benton, W. C. (1991). Vendor selection criteria and methods. European journal of operational research, 50(1), 2-18.
Xia, W., & Wu, Z. (2007). Supplier selection with multiple criteria in volume discount environments. Omega, 35(5), 494-504.
Yu, X., Xu, Z., & Liu, S. (2013). Prioritized multi-criteria decision making based on preference relations. Computers & Industrial Engineering, 66(1), 104-115.
