 Order quantity allocation for total inventory cost optimisation to selected suppliers through VIKOR techniqueA. Naga Phaneendra, V. Diwakar Reddy and G. Sankaraiah International Journal of Industrial and Systems Engineering, 2020, vol. 35, issue 3, 290-298 Abstract: In modern era, no. of potential suppliers for the industries are considerably increased and minimisation of total inventory cost becomes complicated. In response to the concern, we present and address the problem in two stages which efficiently assists to figure out the best suppliers among many and allocates order quantity to each supplier so as to mitigate overall inventory cost. Firstly, potential suppliers are listed and quantitative, qualitative data are collected based on opinion and judgemental survey. The normalised data is represented in square matrix and ranking is awarded to suppliers using utility measures and regret measures. Secondly, the fitness function is formulated and necessary constraints that primarily influences objective function is framed as nonlinear programming model. Further, the model is solved using LINDO software for its optimal solutions. The results show that the model considerably reduces total cost function as no. of orders from customer's increases. Keywords: order quantity; inventory management; supplier selection; VIKOR method. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijisen:v:35:y:2020:i:3:p:290-298 Access Statistics for this article More articles in International Journal of Industrial and Systems Engineering from Inderscience Enterprises Ltd |
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