A joint pricing,lot-sizing,and supplier selection model |
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| Authors: | Jafar Rezaei Mansoor Davoodi |
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| Affiliation: | 1. Section Technology, Strategy and Entrepreneurship, Faculty of Technology, Policy and Management , Delft University of Technology , Delft , The Netherlands j.rezaei@tudelft.nl;3. Laboratory of Algorithms and Computational Geometry, Department of Mathematics and Computer Science , Amirkabir University of Technology , Tehran , Iran |
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| Abstract: | In this paper, we integrate the three strategies that are important to most firms, namely pricing, lot-sizing and supplier selection. Combining the three objectives of total profit, inconsistency, and deficiency with a set of constraints, we formulate this integrated problem as a multi-objective nonlinear programming model, proposing a genetic algorithm (NSGA-II) that provides decision-makers with a number of Pareto-optimal solutions, one of which can be selected on the basis of the higher-level information. We analyse the trade-off between the different Pareto-optimal solutions and discuss the results of that analysis. We then evaluate the performance of NSGA-II compared with SPEA2 in solving the model, which shows NSGA-II performs better. Finally, concluding remarks and suggestions for future research are provided. |
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| Keywords: | lot-sizing pricing supplier selection supply chain management multi-objective optimisation nonlinear programming genetic algorithm NSGA-II SPEA2 |
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