Developing a supply-quantity allocation model for production planning with common parts

  • Authors:

  • Z. H. Che;Y. N. Wang;J. W. Chen

  • Affiliations:

  • Department of Industrial Engineering and Management, National Taipei University of Technology, Taipei, Taiwan;Department of Industrial Engineering and Management, National Taipei University of Technology, Taipei, Taiwan;Department of Industrial Engineering and Management, National Taipei University of Technology, Taipei, Taiwan

  • Venue:
  • EC'07 Proceedings of the 8th Conference on 8th WSEAS International Conference on Evolutionary Computing - Volume 8
  • Year:
  • 2007

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Abstract

In the complex supply chain system, to satisfy the manufacturer's various demands on parts, each supplier needs to lay an emphasis on its advantageous conditions. Especially, in cases of multi-products and many types of common parts, the cost weighing of suppliers will be the best benchmark for the company in the selection of proper suppliers. This study will first lay out various product parts by the Bill of Material (BOM) and construct a mathematical model suitable for the purchase cost, transport cost and assembly cost of multi-products with common parts to construct the selection structure for various suppliers. Moreover, the limited supplier production capacity, the optimized specific common parts suppliers' combinations and corresponding assigned quantities are worked out by Genetic Algorithm (GA). Further, it makes possible for current multi-products companies to have a benchmark in the selection in the future.