Minimizing The Cost Of Leverage Items In Supply Chain:A Mathematical Approach

Little attention is given in the literature to decisions on the appropriate selection of suppliers, and on assigning order quantites to these supplier, in the case of multiple sourcing, with multiple criteria and with suppliers' capacity constraints. In order to be competitive organizations in the new environment (globalization) one has to consider not only the cost of product, but also manage their suppliers in supply chain and select the best of them. In this paper a goal programming model is presented, multiple sourcing, multiple leverage items, multiple time periods, which takes in to net price for purchasing item.

Keywords:

Supply chain Management , supplier selection , goal programming