Optimal procurement plan under demand and provision uncertainty

RODRIGUEZ, MARIA ANALIA; VECCHIETTI, ALDO

Pittsburgh

Encuentro; First Annual CAPD Meeting 2011; 2011

Carnegie Mellon Universitity - Center of Advanced Process Decision Making

Competitive market conditions make that negotiation process and agreements with suppliers are central tools in order to avoid negative effects from uncertainty in provision and demand processes. For that reason, a multi-objective model is proposed to select suppliers, materials to purchase, contract to sign, stock levels and delivery decisions. On the one hand, total cost are minimized including purchase costs, inventory holding costs and transportation costs. On the other hand, expected lost sales due to demand uncertainty are also minimized as a secondary objective function. Discrete decisions are handled applying generalized disjunctive programming while epsilon-constraint method is used to obtain a set of Pareto optimal solutions. Nota: el trabajo fue presentado en exposición oral y en poster. Los autores fueron invitados a participar del evento.