Figuring out the appropriate procurement model for manufacturing environment is a challenge due to the diversity of procurement models’ configurations. A questionnaire was conducted with a number of procurement specialties of the manufacturing sector to characterize the model that fits them the best. Based on the questionnaire result, a constrained mathematical model is developed to optimize the total cost including procurement, holding, ordering and shortage costs. This model includes several factors affect the optimum order quantity and the suppliers’ share factor. Finally, a series of simulation experiments are conducted to validate the proposed model under various system configurations.
A multi-product multi-supplier combined inventory and suppliers’ selection model
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