Integrating Purchase Contract Decisions with Inventory Management Optimization in the Supply Chain

MARÍA ANALIA RODRIGUEZ; ALDO R. VECCHIETTI

Salvador de Bahía, Brasil

Simposio; 10th International Symposium on Process Systems Engineering; 2009

This work addresses the optimization of material inventory management and purchase problems by linking two important players in the supply chain: material suppliers and product manufacturers. The context modeled considers a medium term horizon planning which presents a seasonal demand and a variable restricted capacity from the suppliers. Storage limitations and logical relations are modeled by traditional mathematical constraints while a disjunctive formulation is used for the purchase process involving several hierarchical decision levels. The execution performance shows the formulation efficiency and the results analyzed support the importance of solving the problem.