Supplier Selection under Purchasing and Transportation Conditions
Abstract
Little attention is given in the literature to the transportation impact on the supplier selection decision. In this paper, we propose a mixed nonlinear programming model to simultaneously determine the optimal number of suppliers to employ and the order quantities to allocate to them, taking into account the transportation. The objective of the model is to minimize the total cost, which includes purchasing, transportation, ordering and inventory costs subject to suppliers, buyer and transportation constraints. The model is solved several times, evaluating various scenarios. Each scenario depends on the shipment type used between the suppliers and the buyer
