Deterministic Order Allocation Problem With Defects And Late Delivery: A Case Study Of Bifan Company

Abstract

Supplier management is one of the most critical elements in supply chain management that is gradually aware of as a utmost decision in the administration process. Most of the companies have been expending significantly amount of time and money on allocation process. Hence allocation problem with time and delivery is one of the most important issues of supplier selection. The aim of this research is to represent a linear programing model for minimizing the total cost of order allocation problem of Bifan company. Therefore, the research was conducted in two section. In the first section, we used MIP approach with CPLEX program to select the best way for vendors allocation. Afterwards, in the second section sensitivity analysis has been performed to comprehend the effects of the model parameter variation such as demand, defect rate and lateness impacting vendor allocation decision and total cost.