An uncertain mathematical model to maximize profit of the defective goods supply chain by selecting appropriate suppliers

Salah Alden Ghasimi (), Rizauddin Ramli, Nizaroyani Saibani and Khashayar Danesh Narooei
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Salah Alden Ghasimi: Universiti Kebangsaan Malaysia
Rizauddin Ramli: Universiti Kebangsaan Malaysia
Nizaroyani Saibani: Universiti Kebangsaan Malaysia
Khashayar Danesh Narooei: Universiti Kebangsaan Malaysia

Journal of Intelligent Manufacturing, 2018, vol. 29, issue 6, No 4, 1219-1234

Abstract: Abstract This study presents an uncertain mathematical model for maximizing profit of the defective goods supply chain during uncertain situations by using selection of appropriate suppliers, just-in-time (JIT) logistic philosophy and minimizing total costs including costs of production, shipping, holding, defective goods, scrap goods, shortage in retailers. The selections of suppliers are based on three criteria, namely, quality, JIT delivery, and level of responsibility, which have important roles in the production of perfect goods by manufacturers. In each criterion, two kinds of indicators are considered by manufacturers. The first indicator is the importance of the weighted factor of each criterion for each manufacturer, and the second is weighted factor of each supplier with respect to each criterion. The proposed mathematical model with uncertain parameters and the probability of occurring in various scenarios is investigated. The model is studied in ten scenarios and the average amount is calculated. The mentioned mathematical model is solved by the averages of the parameters using CPLEX.12 solver and Expert Choice software. The findings of the model are maximum profit, amounts of economic production quantity, defective goods, scrap goods, and amounts of products that should be exchanged among the nodes of the supply chain. To achieve maximum benefit, the model can select the appropriate suppliers. The results obtained demonstrate the validity and efficiency of the proposed uncertain mathematical model.

Keywords: Supply chain; Supplier selection; Defective goods; Uncertain model; CPLEX; Expert Choice software (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1007/s10845-015-1172-z

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