The optimization of lot sizing with supplier selection problem in multi-echelon defective supply chain network

摘要

A new problem called lot sizing with supplier selection problem in the multi-prod-uct multi-echelon defective supply chain network (MDSCN) is proposed in this study. We explain the problem by a case study. We take the multi-product MDSCN of X enter-prise into account. Back and front engine blocks are products of X enterprise. The aim of this study is to identify how many components will be purchased from which supplier while meeting the demands of the customers for these two products. The supply chain (SC) network of X enterprise is formed by mixed-integer linear programming (MILP). The optimization of current SC network of X enterprise is carried out by using Linear, INeractive, Discrete Optimizer (LINDO) program. The customer expectations of X enterprise are met at the highest level, and it gives the opportunity to have the knowl-edge, which reduces the total cost, of purchasing-production-distribution strategy with this work.