A supplier-selection model with classification and joint replenishment of inventory items

Davood Mohammaditabar and Seyed Hassan Ghodsypour

International Journal of Systems Science, 2016, vol. 47, issue 8, 1745-1754

Abstract: Since inventory costs are closely related to suppliers, many models in the literature have selected the suppliers and also allocated orders, simultaneously. Such models usually consider either a single inventory item or multiple inventory items which have independent holding and ordering costs. However, in practice, ordering multiple items from the same supplier leads to a reduction in ordering costs. This paper presents a model in capacity-constrained supplier-selection and order-allocation problem, which considers the joint replenishment of inventory items with a direct grouping approach. In such supplier-selection problems, the following items are considered: a fixed major ordering cost to each supplier, which is independent from the items in the order; a minor ordering cost for each item ordered to each supplier; and the inventory holding and purchasing costs. To solve the developed NP-hard problem, a simulated annealing algorithm was proposed and then compared to a modified genetic algorithm of the literature. The numerical example represented that the number of groups and selected suppliers were reduced when the major ordering cost increased in comparison to other costs. There were also more savings when the number of groups was determined by the model in comparison to predetermined number of groups or no grouping scenarios.

Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/00207721.2014.951418 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tsysxx:v:47:y:2016:i:8:p:1745-1754

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TSYS20

DOI: 10.1080/00207721.2014.951418

Access Statistics for this article

International Journal of Systems Science is currently edited by Visakan Kadirkamanathan

More articles in International Journal of Systems Science from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().