Order Allocation in Supply Chain Considering the Economic Production Quantity of Suppliers

Abstract

Abstract: This paper established the relationship between production batch and product quality considering suppliers’ production process shift in a two-stage supply chain consisting of one dominant manufacturer and several suppliers. Based on the different considerations of deciding suppliers’ economic production quantity, and thinking of the purchase cost and expected after-sale loss cost together, the paper builds two kinds of order allocation models. The constraint conditions include supplier capacity constraints and supplier relationship maintenance constraints. Then the models’ superior solutions are obtained through the genetic algorithm. Finally, the paper gives the sensitivity analysis of pricing strategy changes of a single supplier based on the joint decision model.

Key words: economic production quantity, product quality, order allocation, genetic algorithm (GA), two-stage supply chain

CLC Number:

F253.2
F274

SHI Yu-Lei, LU Zhi-Qiang. Order Allocation in Supply Chain Considering the Economic Production Quantity of Suppliers[J]. Journal of Shanghai Jiaotong University, 2011, 45(12): 1747-1752.

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