Optimization of supply chain costs considering quality and order duration

Subject Areas : Industrial Management

Salahuddin Ghasimi ¹ , puria Fakhri ² , Jahedeh Tekiyekhah ³

1 - Assistant Professor, Department of Industrial Engineering, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran
2 - M.S in Industrial Engineering, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran
3 - Assistant Professor, Academic Center for Education, Culture, and Research (ACECR)

Received: 2022-08-15 Accepted : 2023-02-05 Published : 2023-02-20

Keywords: Warranty, Supply Chain, Mathematical Modeling, Quality, order duration,

Abstract :

In today's era, due to the competitive of the market, the concern of producers is to capture more of the market share, for this, customer satisfaction is a priority. By examining previous studies, quality, cost, and delivery time factors play an important role in customer satisfaction. Therefore, in order to achieve this goal, it can be very useful to provide a mathematical model to optimize the costs of the supply chain, taking into account the quality and time of the order. In this research, a comprehensive mathematical model has been presented, which includes costs related to the supply chain network, including: production costs, transportation, warranty, rework of defective products, storage of raw materials and products, scrap, as well as costs caused by the increase It minimizes the order time and quality costs. Games optimizer software was used to solve the proposed model. The results showed that with the increase in quality, the total costs and also the length of the order decreased. Also, for the purpose of validation, the proposed model was implemented in Bakhtar Cable Company for ACSR MINK product in 5 periods. The results obtained from the implementation of this model in the mentioned company showed that by using this model, the company's costs were reduced by 6.7%.

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