A two stage approach for supplier selection problem in multi-item/multi-supplier environment with quantity discounts

Ayhan, Mustafa; Kılıç, Hüseyin Selçuk

doi:10.1016/j.cie.2015.02.026

Cited by 109 publications

(47 citation statements)

References 43 publications

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“…Quantity discounts can be part of a pricing strategy and can be a powerful incentive to motivate buyers to increase the amount of their ordered quantities (Mansini, Savelsbergh, & Tocchella, 2012). The three major types of quantity discounts are incremental quantity discounts, business volume quantity discounts, and all-unit quantity discounts (Ayhan & Kilic, 2015).…”

Section: Introductionmentioning

confidence: 99%

Dynamic green supplier selection and order allocation with quantity discounts and varying supplier availability

Hamdan

Cheaitou

2017

Computers & Industrial Engineering

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This paper aims to solve a multi-period green supplier selection and order allocation problem with all-unit quantity discounts, in which the availability of suppliers differs from one period to another. The proposed approach involves three stages. In the first stage, decision makers use fuzzy TOPSIS (Technique for Order of Preference by Similarity to Ideal Solution) to assign two preference weights to every potential supplier based on the supplier's performance in two sets of criteria considered separately: traditional and green. In the second stage, top management uses the analytic hierarchy process to assign an importance weight to each of the two sets of criteria based on the organization's strategy. The outputs of the first and second stages serve as inputs for a single-product bi-objective integer linear programming model with deterministic demand that takes into account all-unit quantity discounts and a varying number of suppliers in each period of the planning horizon. We implement the proposed mathematical model in MATLAB R2014a software using the weighted comprehensive criterion method and the branch-and-cut algorithm. Statistical analysis helps determine the most suitable ranking approach for suppliers when their availability changes in each period. This paper presents a numerical comparison between two settings: the first considers all-unit quantity discounts, and the second does not. Moreover, a time study shows that the proposed bi-objective integer linear programming model has an exponential computation time.

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Section: Introductionmentioning

confidence: 99%

Dynamic green supplier selection and order allocation with quantity discounts and varying supplier availability

Hamdan

Cheaitou

2017

Computers & Industrial Engineering

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“…Fuzzy AHP has recently been introduced to tackle the vagueness encountered in the decision making process with AHP [5,15,18]. Among others, this research adopts Buckley's geometric mean method, because Buckley's method provides a unique solution to the reciprocal comparison matrix [15,[19][20][21]. The pairwise comparisons for the alternatives and the criteria are made using a preference scale.…”

Section: Fuzzy Analytical Hierarchy Processmentioning

confidence: 99%

Fuzzy AHP, DEA, and Managerial Analysis for Supplier Selection and Development; From the Perspective of Open Innovation

Diouf

Kwak

2018

Sustainability

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Supplier management is critical for supply chain management (SCM). The aim of supplier selection is to find an order of preference among potential suppliers. However, the ranking results for supplier selection may not be important, particularly when the performances are conflicting or have minor differences. Different criteria may have different impacts on the ranking results, and different decision makers may place different priorities on multiple criteria. Relatively worse suppliers may still have to be used for many practical reasons. One alternative is supplier development, but it has been focused on categorizing individual suppliers for possible action plans. A new framework is proposed in this research to address supplier selection and supplier development at the same time in the publishing and printing industries. First, the fuzzy analytical hierarchy process (fuzzy AHP) and data envelopment analysis (DEA) are sequentially performed to rank and select the best supplier(s) of a publishing company. In addition to ranking suppliers, a managerial analysis is proposed to assess the impact of important criteria on supplier selection in more detail. Finally, the results of the DEA are provided for direct supplier development without supplier categorization. This research shows that the proposed framework effectively addresses supplier development as well as supplier selection in the publishing and printing industries.

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“…Item replenishment with discount considerations is a common practice in commercial purchasing activities, however, it is always a great challenge in making a decision on replenishing multi-item with different discount cobinations. In general, item replenishment involves numerous processes and activities, such as demand prediction, supplier selection, price negotiation, and so on [ 20 – 22 ]. The offered discounted prices for the buyer making the replenishment decision becomes even more complicated [ 16 ].…”

Section: Literature Reviewmentioning

confidence: 99%

A novel multi-item joint replenishment problem considering multiple type discounts

et al. 2018

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In business replenishment, discount offers of multi-item may either provide different discount schedules with a single discount type, or provide schedules with multiple discount types. The paper investigates the joint effects of multiple discount schemes on the decisions of multi-item joint replenishment. In this paper, a joint replenishment problem (JRP) model, considering three discount (all-unit discount, incremental discount, total volume discount) offers simultaneously, is constructed to determine the basic cycle time and joint replenishment frequencies of multi-item. To solve the proposed problem, a heuristic algorithm is proposed to find the optimal solutions and the corresponding total cost of the JRP model. Numerical experiment is performed to test the algorithm and the computational results of JRPs under different discount combinations show different significance in the replenishment cost reduction.

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A two stage approach for supplier selection problem in multi-item/multi-supplier environment with quantity discounts

Cited by 109 publications

References 43 publications

Dynamic green supplier selection and order allocation with quantity discounts and varying supplier availability

Dynamic green supplier selection and order allocation with quantity discounts and varying supplier availability

Fuzzy AHP, DEA, and Managerial Analysis for Supplier Selection and Development; From the Perspective of Open Innovation

A novel multi-item joint replenishment problem considering multiple type discounts

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