| Issue |
MATEC Web Conf.
Volume 154, 2018
The 2nd International Conference on Engineering and Technology for Sustainable Development (ICET4SD 2017)
|
|
|---|---|---|
| Article Number | 01071 | |
| Number of page(s) | 5 | |
| Section | Engineering and Technology | |
| DOI | https://doi.org/10.1051/matecconf/201815401071 | |
| Published online | 28 February 2018 | |
Mixed integer linear programming model for dynamic supplier selection problem considering discounts
1
Department of Industrial Engineering Diponegoro University, Semarang 50275 Indonesia
2
Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia
3
Department of Mathematics, Diponegoro University, Semarang 50275 Indonesia
* Corresponding author: purnawan@undip.ac.id
Supplier selection is one of the most important elements in supply chain management. This function involves evaluation of many factors such as, material costs, transportation costs, quality, delays, supplier capacity, storage capacity and others. Each of these factors varies with time, therefore, supplier identified for one period is not necessarily be same for the next period to supply the same product. So, mixed integer linear programming (MILP) was developed to overcome the dynamic supplier selection problem (DSSP). In this paper, a mixed integer linear programming model is built to solve the lot-sizing problem with multiple suppliers, multiple periods, multiple products and quantity discounts. The buyer has to make a decision for some products which will be supplied by some suppliers for some periods cosidering by discount. To validate the MILP model with randomly generated data. The model is solved by Lingo 16.
© The Authors, published by EDP Sciences, 2018
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (http://creativecommons.org/licenses/by/4.0/).
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