A JOINT PRICING, LOT-SIZING AND SUPPLIER SELECTION MODEL

Jafar Rezaei (1) , Mansoor Davoodi (2)

1 Department of Technology, Strategy & Entrepreneurship
2 Department of Mathematics and Computer Science

In this paper, we integrate the three strategies that are important to most firms, namely pricing, lot-sizing and supplier selection. Combining the three objectives of total profit, inconsistency and deficiency with a set of constraints, we formulate this integrated problem as a multi-objective non-linear programming model, proposing a genetic algorithm (NSGA-II) that provides decision-makers with a number of Pareto-optimal solutions, one of which can be selected on the basis of the higher-level information. We analyze the trade-off between the different Pareto-optimal solutions and discuss the results of that analysis. We then evaluate the performance of NSGA-II compared to SPEA2 in solving the model, which shows NSGA-II performs better. Finally, concluding remarks and suggestions for future research are provided.

Keywords: Physical Sciences

Domains: Engineering Sciences [physics]

Jafar Rezaei, Mansoor Davoodi. A JOINT PRICING, LOT-SIZING AND SUPPLIER SELECTION MODEL. International Journal of Production Research, 2011, ⟨10.1080/00207543.2011.613866⟩. ⟨hal-00740352⟩