Supplier Selection And Order Allocation Problem With Quantity Discount

Abstract

Giving standard supplier selection approaches is one of the most crucial matters for a procuring corporation to sustain in a marketplace. In this thesis, a mixed integer non-linear programming model is proposed and integrated with the AHP - Analytic Hierarchy Process results, and the GA – Genetic Algorithm will be applied to account for the convergence of supplier selection and order allocation in a single item and multiple vendors. Further to that, quantity discounts are included considering the all-unit discount types. The theoretical scheme will be used in case of TT Construction Contractor Company. It recommends a systematical supplier selection and procurement strategy to strengthen overall operational reliability and concentrate of execution phase for customers, using appropriate materials, reducing expenses incurred, and completing projects on time and on plan.