A Multi-product Supplier Selection and Order Allocation Model Under Demand Unceratinity and Supplier Distruptions

Supply chain engineering deals with vast group of functionalities that are very crucial in every organization. Some of its main areas include Design, Planning, Manufacturing, Distribution and Suppliers. Supply Chain Engineering is centered around mathematical modeling, whereas Supply Chain Management is a business model. In this paper a multi- echelon supply chain model with multiple suppliers and multiple products is considered across two stages of the supply chain. The main focus of this paper is to model a multi-objective problem that will determine the optimal order quantities to be ordered from the suppliers considering both supply and demand uncertainties. The demand follows normal distribution and the supplier distributions are represented by a set of scenarios of shrinkage in their supplier capacity with the respective probabilities of occurrences. The multi-criteria objective function will have the following three main objectives- minimize the total cost across the time period, minimize the total quality defect of each product and minimize the supplier disruptions of each supplier. Finally, MS Solver is used to illustrate the numerical example for the developed model which will determine the exact quantities to be ordered for each product by the manufacturer from each supplier. Robert Voigt ( Adviser) Professor and Graduate Program Coordinator M. Jeya Chandra ( Reader) Professor Emeritus of Industrial and Manufacturing Engineering

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Work Title A Multi-product Supplier Selection and Order Allocation Model Under Demand Unceratinity and Supplier Distruptions
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Penn State
Creators
  1. Aishwarya Shivakumar
Keyword
  1. Supply Chain
  2. Multi-Optimization
  3. Multi-Echelon
  4. Inventory
License All rights reserved
Work Type Research Paper
Publication Date 2020
Language
  1. English
Deposited April 07, 2020

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