International Journal of Supply Chain Management
Vol 3, No 3 (2014): International Journal of Supply Chain Management (IJSCM)

A Multi-objective Stochastic Programming Model for Order Quantity Allocation under Supply Uncertainty

Xiaobing Liu (Dalian University of Technology)
Zhancheng Li (Dalian University of Technology)
Li He (Dalian University of Technology)



Article Info

Publish Date
29 Sep 2014

Abstract

One of the basic and significant subjects in supply chain management is purchasing and supply management, in which supplier selection and order allocation occupy the critical position. Recently, it has been shown that supply uncertainty is of great concern to supply chain managers and practitioners. In this paper, by taking the constraints of minimum purchasing quota and minimum production batch into account, a multi-objective mixed-integer stochastic programming model considering uncertainty in both supply timing and quantity is presented. By means of transforming the stochastic constraints into deterministic equivalents, the model is converted into a linear programming model. An improved two-phase heuristic approach is proposed and its feasibility and efficiency is illustrated through a numerical example. Further, another numerical instance is conducted to evaluate the effects of the weight of each objective and uncertainty degree on the optimal order policy and to obtain some managerial insights for the decision-making of the manufacturers.

Copyrights © 2014






Journal Info

Abbrev

IJSCM

Publisher

Subject

Decision Sciences, Operations Research & Management Engineering Environmental Science Industrial & Manufacturing Engineering Transportation

Description

International Journal of Supply Chain Management (IJSCM) is a peer-reviewed indexed journal, ISSN: 2050-7399 (Online), 2051-3771 (Print), that publishes original, high quality, supply chain management empirical research that will have a significant impact on SCM theory and practice. Manuscripts ...