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The optimization of lot sizing with supplier selection problem in multi-echelon defective supply chain network

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  • Ercan Şenyiğit

Abstract

A new problem called lot sizing with supplier selection problem in the multi-product multi-echelon defective supply chain network (MDSCN) is proposed in this study. We explain the problem by a case study. We take the multi-product MDSCN of X enterprise into account. Back and front engine blocks are products of X enterprise. The aim of this study is to identify how many components will be purchased from which supplier while meeting the demands of the customers for these two products. The supply chain (SC) network of X enterprise is formed by mixed-integer linear programming (MILP). The optimization of current SC network of X enterprise is carried out by using Linear, INeractive, Discrete Optimizer (LINDO) program. The customer expectations of X enterprise are met at the highest level, and it gives the opportunity to have the knowledge, which reduces the total cost, of purchasing--production--distribution strategy with this work.

Suggested Citation

  • Ercan Şenyiğit, 2011. "The optimization of lot sizing with supplier selection problem in multi-echelon defective supply chain network," Mathematical and Computer Modelling of Dynamical Systems, Taylor & Francis Journals, vol. 18(3), pages 273-286, December.
    • Handle: RePEc:taf:nmcmxx:v:18:y:2011:i:3:p:273-286
    DOI: 10.1080/13873954.2011.654123
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