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Note. An Acquisition Policy for a Single Item Multi-Supplier System

Author

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  • Meir J. Rosenblatt

    (Faculty of Industrial Engineering and Management, Technion---Israel Institute of Technology, Haifa 32000, Israel; Additional address for Rosenblatt: John M. Olin School of Business, Washington University, St. Louis, Missouri 63130)

  • Yale T. Herer

    (Faculty of Industrial Engineering and Management, Technion---Israel Institute of Technology, Haifa 32000, Israel)

  • Ilan Hefter

    (Faculty of Industrial Engineering and Management, Technion---Israel Institute of Technology, Haifa 32000, Israel)

Abstract

In this paper we consider the problem of developing an acquisition policy. Specifically, given a set of potential (qualified) suppliers, from whom should the firm buy the product, in what quantities, and how often? We provide properties of the optimal solution and relate them to the approach of using a single source as advocated by JIT. The solution procedure provides the periodic order quantity from each supplier; the order size; and the firm cycle time as well as how many times per cycle we should order from each supplier. We show that the maximum error of our solution can be made as small as desired.

Suggested Citation

  • Meir J. Rosenblatt & Yale T. Herer & Ilan Hefter, 1998. "Note. An Acquisition Policy for a Single Item Multi-Supplier System," Management Science, INFORMS, vol. 44(11-Part-2), pages 96-100, November.
    • Handle: RePEc:inm:ormnsc:v:44:y:1998:i:11-part-2:p:s96-s100
    DOI: 10.1287/mnsc.44.11.S96
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    References listed on IDEAS

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    Cited by:

    1. Ventura, José A. & Bunn, Kevin A. & Venegas, Bárbara B. & Duan, Lisha, 2021. "A coordination mechanism for supplier selection and order quantity allocation with price-sensitive demand and finite production rates," International Journal of Production Economics, Elsevier, vol. 233(C).
    2. Zhang, Ju-liang & Zhang, Ming-yu, 2011. "Supplier selection and purchase problem with fixed cost and constrained order quantities under stochastic demand," International Journal of Production Economics, Elsevier, vol. 129(1), pages 1-7, January.
    3. Tsai, Jung-Fa, 2007. "An optimization approach for supply chain management models with quantity discount policy," European Journal of Operational Research, Elsevier, vol. 177(2), pages 982-994, March.
    4. Svoboda, Josef & Minner, Stefan & Yao, Man, 2021. "Typology and literature review on multiple supplier inventory control models," European Journal of Operational Research, Elsevier, vol. 293(1), pages 1-23.
    5. Chang, Ching-Ter, 2005. "A linearization approach for inventory models with variable lead time," International Journal of Production Economics, Elsevier, vol. 96(2), pages 263-272, May.
    6. S W Lam & L C Tang, 2006. "Multiobjective vendor allocation in multiechelon inventory systems: a spreadsheet model," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(5), pages 561-578, May.
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    9. Li, Xin & Ventura, José A. & Venegas, Bárbara B. & Kweon, Sang Jin & Hwang, Seong Wook, 2018. "An integrated acquisition policy for supplier selection and lot sizing considering total quantity discounts and a quality constraint," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 19-40.
    10. Mansini, Renata & Savelsbergh, Martin W.P. & Tocchella, Barbara, 2012. "The supplier selection problem with quantity discounts and truckload shipping," Omega, Elsevier, vol. 40(4), pages 445-455.
    11. Firouz, Mohammad & Keskin, Burcu B. & Melouk, Sharif H., 2017. "An integrated supplier selection and inventory problem with multi-sourcing and lateral transshipments," Omega, Elsevier, vol. 70(C), pages 77-93.
    12. Adeinat, Hamza & Ventura, José A., 2015. "Determining the retailer's replenishment policy considering multiple capacitated suppliers and price-sensitive demand," European Journal of Operational Research, Elsevier, vol. 247(1), pages 83-92.
    13. Huang, George Q. & Qu, T., 2008. "Extending analytical target cascading for optimal configuration of supply chains with alternative autonomous suppliers," International Journal of Production Economics, Elsevier, vol. 115(1), pages 39-54, September.
    14. Ali Ekici & Baṣak Altan & Okan Örsan Özener, 2016. "Pricing decisions in a strategic single retailer/dual suppliers setting under order size constraints," International Journal of Production Research, Taylor & Francis Journals, vol. 54(7), pages 1887-1898, April.
    15. Manerba, Daniele & Mansini, Renata, 2012. "An exact algorithm for the Capacitated Total Quantity Discount Problem," European Journal of Operational Research, Elsevier, vol. 222(2), pages 287-300.
    16. Bianchessi, N. & Mansini, R. & Speranza, M.G., 2014. "The distance constrained multiple vehicle traveling purchaser problem," European Journal of Operational Research, Elsevier, vol. 235(1), pages 73-87.
    17. Saif Benjaafar & Ehsan Elahi & Karen L. Donohue, 2007. "Outsourcing via Service Competition," Management Science, INFORMS, vol. 53(2), pages 241-259, February.
    18. Mendoza, Abraham & Ventura, José A., 2010. "A serial inventory system with supplier selection and order quantity allocation," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1304-1315, December.
    19. Ekici, Ali, 2013. "An improved model for supplier selection under capacity constraint and multiple criteria," International Journal of Production Economics, Elsevier, vol. 141(2), pages 574-581.
    20. Joseph Geunes & Zuo‐Jun Shen & H. Edwin Romeijn, 2004. "Economic ordering decisions with market choice flexibility," Naval Research Logistics (NRL), John Wiley & Sons, vol. 51(1), pages 117-136, February.
    21. Chang, Ching-Ter & Chiou, Chei-Chang & Liao, Yi-Shin & Chang, Shu-Chin, 2008. "An exact policy for enhancing buyer-supplier linkage in supply chain system," International Journal of Production Economics, Elsevier, vol. 113(1), pages 470-479, May.

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