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An international supplier selection model with inventory and transportation management decisions

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Abstract

In this paper, we develop a mixed integer programming model for a supplier selection problem in an international context. The main features that characterize the international supplier selection are first identified. We show that when operating in an international context, the supplier selection process should consider the following issues: several buyers’ sites; inventory decisions, in particular the safety stocks that are held by buyers to cope with the delivery lead time uncertainty; inventory capacity constraints in buyers’ sites; selection of transportation modes, each having a specific delivery frequency and a transportation capacity; and multiple products and multiple time periods. Then, we propose a supplier selection model that takes into account such characteristics and that is suited for the international context. Finally, we solve the model with the commercial optimization software Cplex and we perform computational experiments based on a realistic case study from the automotive industry in order to prove the solvability and the usefulness of the model. Sensitivity analyzes are also performed for a number of model parameters.

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Authors and Affiliations

  1. Toulouse Business School, Université de Toulouse, 20, bd Lascrosses, BP 7010, 31068, Toulouse, France

    Ramzi Hammami

  2. Laboratoire G-SCOP, Grenoble INP, UJF, CNRS, 46 Avenue Felix Viallet, 38031, Grenoble, France

    Yannick Frein

  3. Laboratoire OASIS, ENI Tunis, B.P.37, Le Belvedere, 1002, Tunis, Tunisia

    Atidel B. Hadj-Alouane

Authors
  1. Ramzi Hammami
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  2. Yannick Frein
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  3. Atidel B. Hadj-Alouane
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Correspondence to Ramzi Hammami.

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Hammami, R., Frein, Y. & Hadj-Alouane, A.B. An international supplier selection model with inventory and transportation management decisions. Flex Serv Manuf J 24, 4–27 (2012). https://doi.org/10.1007/s10696-011-9087-2

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