Supplier Selection In Multi-Echelon Defective Supply Chain Optimization (A Case Study Of GS Battery VietNam)

Abstract

In the real manufacturing process, the supply chain system cannot effectively complete the production tasks or delivery raw materials and products. A supply chain system that has defects in at least one echelon is called a multi-echelon defective supply chain (MDSC) system. Most supply chain systems are MDSC systems. Reducing the total operation cost by determining parts or components supply quota from different suppliers are becoming an important issue for businesses. This thesis first lists the component of various products through bill of material (BOM) and constructs a mathematical model for multi-phase product’s components in order to assess the assembling relationship of various components as well as calculation of overall cost following MDSC system. Accordingly, Mixed-Integer Linear Programming with several constraints that relate strongly to the problem was implemented to simulate the mathematical model with the top purpose of bringing profit to the most. As generating the proposed model in IBM-CPLEX software, we can figure out the suitable suppliers and appropriate quantity allocation of selected suppliers efficiently. Keywords: Supplier selection, quantity allocation, MILP, BOM, MDSC