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A multi-period multi-commodity lot-sizing problem with supplier selection, storage selection and discounts for the process industry

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  • Kirschstein, Thomas
  • Meisel, Frank

Abstract

In this paper we consider the sourcing process of a production facility from the process industry. The production facility sources raw materials from a set of suppliers that offer different discount schemes. For storing raw materials, heterogeneous storage facilities can be used, which vary with respect to their associated costs and capacities. We formulate the corresponding planning problem of selecting suppliers and storage facilities as well as determining order quantities and transport flows under the discount schemes offered by the suppliers. For solving large problem instances, a heuristic based on kernel search is proposed and evaluated in a real world case study. The case study reveals that supplier selection and storage selection are highly interdependent decisions. By integrating both perspectives, significant savings can be generated. It turns out that single-sourcing is the dominant strategy for most raw materials. However, the selection of the optimal suppliers depends on both the prices offered by the suppliers as well as the associated logistics costs for transportation and stock-holding.

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  • Kirschstein, Thomas & Meisel, Frank, 2019. "A multi-period multi-commodity lot-sizing problem with supplier selection, storage selection and discounts for the process industry," European Journal of Operational Research, Elsevier, vol. 279(2), pages 393-406.
    • Handle: RePEc:eee:ejores:v:279:y:2019:i:2:p:393-406
    DOI: 10.1016/j.ejor.2019.05.039
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    References listed on IDEAS

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    Cited by:

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    3. Zhili Jia & Liyi Liu & Zhaofeng Diao, 2024. "A Group Intuitionistic Fuzzy Exponential TODIM Method Considering Attribute Interactions Applied to Green Building Material Supplier Selection," Sustainability, MDPI, vol. 16(18), pages 1-24, September.
    4. Mehdi Soltanifar & Hamid Sharafi, 2022. "A modified DEA cross efficiency method with negative data and its application in supplier selection," Journal of Combinatorial Optimization, Springer, vol. 43(1), pages 265-296, January.
    5. Liu, Liyi & Tu, Yan & Zhang, Wen & Shen, Wenjing, 2024. "Supplier selection for emergency material based on group exponential TODIM method considering hesitant fuzzy linguistic set: A case study of China," Socio-Economic Planning Sciences, Elsevier, vol. 94(C).
    6. Shuai Wang & Jizhuang Hui & Bin Zhu & Ying Liu, 2022. "Adaptive Genetic Algorithm Based on Fuzzy Reasoning for the Multilevel Capacitated Lot-Sizing Problem with Energy Consumption in Synchronizer Production," Sustainability, MDPI, vol. 14(9), pages 1-24, April.
    7. Mohammad Khosroabadi & Jafar Gheidar-Kheljani & Mohammad Hosein Karimi Gavareshki, 2024. "Utilizing Multi-vehicle Traveling Purchaser Problem for Multiple-Supplier Selection and Multi-period Lot-Sizing in a Fuzzy Demand Environment," SN Operations Research Forum, Springer, vol. 5(4), pages 1-28, December.

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