Multiple sourcing under supplier failure risk and quantity discount: A genetic algorithm approach

P.L. Meena and S.P. Sarmah

Transportation Research Part E: Logistics and Transportation Review, 2013, vol. 50, issue C, 84-97

Abstract: 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.

Keywords: Supply chain; Order allocation; Supplier failure; Genetic algorithm; Quantity discount (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (20)

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DOI: 10.1016/j.tre.2012.10.001

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