Multi-period Supplier Selection Decision-Making Considering Quantity Discounts

Abstract:

For a supply chain composed of one dominant manufacturer and several upstream suppliers, an integer linear programming model of multi-objective and multi-period order assignment for manufacturers was established, in order to minimize the total cost of the manufacturer when purchasing. The purchasing expenditure of manufacturers, sales loss caused by quality factors and inventory cost affected by delivery factors were considered comprehensively in the proposed model, which combined with three factors of products such as product price, quality and delivery. The proposed model took the production capacity of suppliers, quantity discount of suppliers, relationship maintenance between suppliers and manufacturers as well as inventory capacity of manufacturers as constraints. The weight analysis of the three objectives was carried out through a calculation example and the optimal solution of the proposed model was obtained by Lingo17.0, which provided a multi-period order decision-making framework for manufacturers. Finally, the sensitivity analysis of several important influence parameters in the proposed model was carried out, and some reference suggestions for manufacturers and suppliers were also put forward.