GlobalSourcingandVendorRiskManagementinSupplyChains.pptVIP

Nov. 23, 2010 A. Ravi Ravindran (Penn State) * Objective Functions Minimize the purchasing and fixed cost. Minimize the average lead-time. Minimize loss due to rejects (modeled as MtT risk) Minimize loss due to hurricanes (modeled as VaR risk) Nov. 23, 2010 A. Ravi Ravindran (Penn State) * Model Constraints Capacity Constraints Demand Constraints Maximum number of suppliers Linearizing Constraints for quantity discounts Non-negativity constraints. Binary Constraints. Nov. 23, 2010 A. Ravi Ravindran (Penn State) * Solution Method Goal Programming (GP) is used to solve the multi-objec