Journal
COMPUTERS & INDUSTRIAL ENGINEERING
Volume 56, Issue 2, Pages 677-690Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.cie.2006.12.006
Keywords
Supplier selection; Analytic Network Process; Goal Programming; Multi-criteria decision making; Multi-period lot-sizing
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This paper presents a multi-period inventory lot sizing scenario, where there is single product and multiple suppliers. By considering multi-period planning horizon, all integrated approach of Archimedean Goal Programming (AGP) and Analytic Network Process (ANP) is suggested. This integrated approach proposes a two-stage mathematical model to evaluate the suppliers and to determine their periodic shipment allocations given a number of tangible and intangible criteria. In the evaluation stage, the suppliers are evaluated according to 14 criteria that are involved ill four control hierarchies; benefit, opportunity. cost and risk (BOCR). In the shipment stage, a multi objective mixed integer linear programming (MOMILP) model is described to solve the order allocation problem. This MOMILP model is suggested to achieve target values of periodic goals: budget, aggregate quality, total value of purchasing (TVP) and demand over the planning horizon, without exceeding vendor production capacities. This multi-period model is solved by using AGP. Finally sonic computational experiments are conducted to test the performance of the proposed method. (C) 2007 Elsevier Ltd. All rights reserved.
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