Case Study 2 Supplier Order Allocation

To demonstrate the use of goal programming in supplier selection, consider the case where we have two products, one buyer, five suppliers where each supplier offers two price breaks. The problem here is to find which 

The cost of acquiring one unit of demand for product i from supplier k at price level m, p, and the quantity at which price break occurs for product i for supplier k, bg n, is given in Table 6.29. 

Fix cost associated with supplier k, Fy is given in Table 6.30. 

Unit Price and Price Break for Supplier Product Combination (Case Study 2) 

Product Supplier Break Unit Price Quantity 

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We shall now illustrate the four goal programming methods using a supplier order allocation case study. The data used in all four methods is presented next. 

In this case study, you will solve a supplier order allocation problem with two products, two buyers, and two suppliers. The problem has three conflicting criteria, namely, total cost, lead-time, and quality (measured by rejects). All three objectives have to be minimized. 

Supplier selection and order allocation Case study)... 

Case study 4 Supplier Selection and Order Allocation... 

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