A serial inventory system with supplier selection and order quantity allocation

Abraham Mendoza, José A. Ventura

Research output: Contribution to journalArticle

47 Scopus citations

Abstract

Given the prevalence of both supplier selection and inventory control problems in supply chain management, this article addresses these problems simultaneously by developing a mathematical model for a serial system. This model determines an optimal inventory policy that coordinates the transfer of items between consecutive stages of the system while properly allocating orders to selected suppliers in stage 1. In addition, a lower bound on the minimum total cost per time unit is obtained and a 98% effective power-of-two (POT) inventory policy is derived for the system under consideration. This POT algorithm is advantageous since it is simple to compute and yields near optimal solutions.

Original languageEnglish (US)
Pages (from-to)1304-1315
Number of pages12
JournalEuropean Journal of Operational Research
Volume207
Issue number3
DOIs
StatePublished - Dec 16 2010

All Science Journal Classification (ASJC) codes

  • Computer Science(all)
  • Modeling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

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