Journal
TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW
Volume 50, Issue -, Pages 84-97Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.tre.2012.10.001
Keywords
Supply chain; Order allocation; Supplier failure; Genetic algorithm; Quantity discount
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This paper investigates an order allocation problem of a manufacturer/buyer among multiple suppliers under the risks of supply disruption. A mixed integer non-linear programming (MINLP) model is developed for order allocation considering different capacity, failure probability and quantity discounts for each supplier. We have shown that the formulated problem is NP-hard in nature and genetic algorithm (GA) approach is used to solve it. The model is illustrated through a numerical study and the result portrays that the cost of supplier has more influence on order quantity allocation rather than supplier's failure probability. (C) 2012 Elsevier Ltd. All rights reserved.
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