Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/157481 
Year of Publication: 
2016
Citation: 
[Journal:] Journal of Industrial Engineering International [ISSN:] 2251-712X [Volume:] 12 [Publisher:] Springer [Place:] Heidelberg [Year:] 2016 [Pages:] 243-254
Publisher: 
Springer, Heidelberg
Abstract: 
Selecting the best suppliers is crucial for a company's success. Since competition is a determining factor nowadays, reducing cost and increasing quality of products are two key criteria for appropriate supplier selection. In the study, first the inventories of agglomeration plant of Isfahan Steel Company were categorized through VED and ABC methods. Then the models to supply two important kinds of raw materials (inventories) were developed, considering the following items: (1) the optimal consumption composite of the materials, (2) the total cost of logistics, (3) each supplier's terms and conditions, (4) the buyer's limitations and (5) the consumption behavior of the buyers. Among diverse developed and tested models-using the company's actual data within three pervious years-the two new innovative models of mixed-integer non-linear programming type were found to be most suitable. The results of solving two models by lingo software (based on company's data in this particular case) were equaled. Comparing the results of the new models to the actual performance of the company revealed 10.9 and 7.1 % reduction in total procurement costs of the company in two consecutive years.
Subjects: 
Inventory control
Supplier selection
Multiple sourcing
Mathematical models
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size
543.69 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.