A multi-product, multi-period model to select supplier for deteriorating products while considering uncertainty as well as backorder

Subject Areas : Mathematical Optimization

Mohsen Lashgari ¹ , Seyed Jafar Sadjadi ² , Misugh Sahihi ³

1 - School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran
2 - School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran
3 - School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

Received: 2020-10-08 Accepted : 2020-10-08 Published : 2020-09-01

Keywords: Inventory control, Robust Optimization, deteriorating items, Pattern Search, Scenario-based,

Abstract :

Determining supplier and optimum order of the quantity is an issue of great importance in logistics management for many companies. In this regard, it is crucial to determine the best decisions for the order quantity as well as the most suitable supplier through considering existing limitations and uncertainties. To optimize a multi-product, multi-period model with select supplier for deteriorating products, while uncertainty of future economic conditions directly affects the problem conditions. In this regard, a mixed integer definite programing model is introduced, and afterwards, the proper robust structure is established through a two-phase scenario-based approach. The behavior of the main features of the inventory system elaborated upon in this article, that is, multi-product, uni-level, multi-period inventory system, has been modeled under the influence of uncertain economic environment. In the final phase pattern, search method is employed to determine proper answers, the results of which are analyzed, to shed light on various aspects of the solving procedure, as well as the problem itself. The applicability of the proposed model is shown by an illustrative example.

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