Supplier Selection by Krishnendu Mukherjee

Author:Krishnendu Mukherjee
Language: eng
Format: epub
Publisher: Springer India, New Delhi

Table 2.13Supplier performance data

Sl No.

% failure rate of supply (f)

Reliability (α = 1 − f)

Capacity (ton)

Total cost (Rs/ton)

Transportation cost (Rs/ton)

Quality

% late delivery

% of coal contains 15–18% ash in per ton

% of coal contains 15–16% moisture in per ton

1.

6

0.94

4000

2000 + 10*Q

749

0.8

0.85

0.1

2.

5

0.95

3000

2000 + 10*Q

750

0.75

0.8

0.15

3.

8

0.92

3000

2000 + 10*Q

752

0.7

0.8

0.2

All three suppliers can be accepted with low risk to supply coal.

Multi-objective functions for supplier selection:

In this problem, a linear total cost function (TC(Q)=a + bQ) is considered for all three suppliers for simplicity. As shown below, a nonlinear integer function is developed for total cost of purchase which is to be minimized, as shown in Fig. 2.10.

Fig. 2.10Objective function for total cost of purchase (TCP)

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