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Optimizing whole supply chain benefit versus buyer's benefit through supplier selection


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  • Gheidar Kheljani, J.
  • Ghodsypour, S.H.
  • O'Brien, C.
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    A number of mathematical models have been developed for modeling the supplier selection problem. Most of these models have considered the buyer's viewpoint and maximized only the buyer's benefit. This does not necessarily lead to an optimal situation for all members of a supply chain. Co-ordination models have been presented to optimize the benefits of all the members and alignment of decisions between entities of a supply chain. In this paper, the issue of coordination between one buyer and multiple potential suppliers in the supplier selection process has been considered. On the other hand, in the objective function of the model, the total cost of the supply chain is minimized rather than only the buyer's cost. The total cost of the supply chain includes the buyer's cost and suppliers' costs. The model has been solved by applying mixed-integer nonlinear programming. Finally, the proposed method is illustrated by a numerical example.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 121 (2009)
    Issue (Month): 2 (October)
    Pages: 482-493

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    Handle: RePEc:eee:proeco:v:121:y:2009:i:2:p:482-493

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    Keywords: Supplier selection Supply chain coordination Nonlinear programming;


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    Cited by:
    1. Yu, Yugang & Hong, Zhaofu & Zhang, Linda L. & Liang, Liang & Chu, Chengbin, 2013. "Optimal selection of retailers for a manufacturing vendor in a vendor managed inventory system," European Journal of Operational Research, Elsevier, vol. 225(2), pages 273-284.
    2. Xu, Jiuping & Ding, Can, 2011. "A class of chance constrained multiobjective linear programming with birandom coefficients and its application to vendors selection," International Journal of Production Economics, Elsevier, Elsevier, vol. 131(2), pages 709-720, June.
    3. Luminiţa Nicolescu & Cristina Galalae & Alexandru Voicu, 2013. "Solving a Supply Chain Management Problem to Near Optimality Using Ant Colony Optimization, in an International Context," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(33), pages 8-26, February.
    4. Zhang, Yan & Xia, Guoping, 2010. "Short-run cost-based pricing model for a supply chain network," International Journal of Production Economics, Elsevier, Elsevier, vol. 128(1), pages 167-174, November.


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