A simulated annealing approach to supplier selection aware inventory planning

Turk, Seda; Miller, Simon; �zcan, Ender; John, Robert

Abstract

Selection of an appropriate supplier is a crucial and challenging task in the effective management of a supply chain. Also, appropriate inventory management is critical to the success of a supply chain operation. In recent years, there has been a growing interest in the area of selection of an appropriate vendor and creating good inventory planning using supplier selection information. In this paper, we consider both of these tasks in a two-stage approach employing Interval Type-2 Fuzzy Sets (IT2FS) and Simulated Annealing (SA). In the first stage, the supplier selection problem is solved by using IT2FS for ranking the suppliers. We present an inventory model incorporating information from the first stage that captures the influence of supplier risk on the total cost of supply chain operation. In the second stage, SA is used for solving the inventory planning problem based on this model improving on both supply chain operation cost and supplier risk. In this study, we evaluated our approach using different scenarios and scalarisation techniques for SA to handle two objectives, simultaneously.

Citation

Turk, S., Miller, S., Özcan, E., & John, R. (2015). A simulated annealing approach to supplier selection aware inventory planning. In 2015 IEEE Congress on Evolutionary Computation (CEC). https://doi.org/10.1109/CEC.2015.7257105

• Conference Name: 2015 IEEE Congress on Evolutionary Computation (CEC2015)
• End Date: May 28, 2015
• Acceptance Date: May 25, 2015
• Publication Date: May 25, 2015
• Deposit Date: Jun 13, 2016
• Publicly Available Date: Jun 13, 2016
• Peer Reviewed: Peer Reviewed
• Book Title: 2015 IEEE Congress on Evolutionary Computation (CEC)
• DOI: https://doi.org/10.1109/CEC.2015.7257105
• Public URL: https://nottingham-repository.worktribe.com/output/751439
• Publisher URL: http://dx.doi.org/10.1109/CEC.2015.7257105
• Additional Information: Published in: 2015 IEEE Congress on Evolutionary Computation (CEC) proceedings, 25-28 May 2015, Sendai, Japan. IEEE, 2015, ISBN 9781479974924, pp. 1799-1806.; doi:10.1109/CEC.2015.7257105 ; ; © 2015 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.
• Contract Date: Jun 13, 2016