A robust model for supplier selection and inventory management in a discrete space

Document Type : Research Paper

Authors

1 Associate Professor, Faculty of engineering, Alzahra university

2 Ph.D candidate of industrial engineering, Engineering department, Alzahra university

10.22059/aie.2023.361821.1875

Abstract

Uncertainty in the form demand fluctuation has been determined as one of a most affecting source of risk in supply chain management problems. This paper aims at determining the optimal supplier selection, order allocation and synchronizing delivery process of a single product in a supply chain with several suppliers and a single buyer considering uncertain demand. The complexity of the model is related to the lot sizing scheme in which the inventory is accumulated at the buyer’s warehouse. Proposed model considers total cost of the whole supply chain under demand sets related to different economic situations. A robust model is then proposed using a convex nonlinear scenario based stochastic programming where the objective is to minimize the total system expected cost. Finally, we conduct several numerical studies to evaluate the performance of the proposed model and study the effect of variation of the scenario set data on the model outputs.

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Advances in Industrial Engineering

Articles in Press, Accepted Manuscript
Available Online from 19 December 2023

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