A multi-objective model for lot-sizing with supplier selection for an assembly system

Abstract

Lot-sizing with supplier selection (LS-SS) is a fast-growing offspring of two major problem parents in logistics and supply chain management (‘lot-sizing’ and ‘supplier selection’). The model proposed in this paper is an attempt to extend it to an assembly system, by formulating a multi-objective model for an integrative problem of LS-SS for assembly items. The total costs of the system, consisting of purchasing, ordering, transportation, assembly, and holding, is considered the first objective function, while the total reliability of the finished products is considered the second objective function. The decision-maker aims to minimise the total costs while maximising the total reliability. Several constraints of the system (e.g. storage capacity, supplier production capacity) are taken into account. Given the complexity of the model, a heuristic evolutionary algorithm is proposed to solve the model. The results indicate which assembly items to order in which quantities, from which suppliers and in which time periods.

Keywords:

• lot-sizing
• supplier selection
• assembly system
• product reliability

Disclosure statement

No potential conflict of interest was reported by the authors.