Abstract

AbstractThe aim of this paper is to develop an optimization model to optimally select suppliers and allocate components to the selected suppliers. The objectibve function of the model is to minimize purchasing cost and fuzzy quality loss. Using fuzzy quality loss, the assembly quality may be divided into several grades allowing the fuzziness in the resulted assembly tolerance. The model considers several constraints such as production capacity, assembly quality, and process and technological capability of the suppliers. A numerical example is given in this paper to show the implementation of the model. Sensitivity analysis is performed to determine the effect of process capability to the supplier selection, components allocation and total cost. The increase of process capability in one of the suppliers affects the selection and component allocation mainly when the process capability increase from 1 to 1.5. Further, increasing the process capability index to 2 has no effect on the selection and allocation ...

Highlights

  • A product may consist of many components

  • In this paper, an optimization model was develoed to aid a decision-maker in selecting suppliers and allocating the components to the selected suppliers

  • Several constraints are considered in this paper such as assembly tolerance and technological and process capability of the suppliers in producing the components

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Summary

Introduction

A product may consist of many components. The capability and production capacity of a company will constraint the ability of the company in producing the components. The company has to select suppliers such that the accumulation of component tolerance may not exceed the assembly tolerance which set to maintain the quality of the final product while in the same time minimizing the purchasing cost. The model considers process and technological capability and production capacity of the suppliers to minimize purchasing cost and fuzzy quality loss. Constraints The constraints of the model in this paper consist of assembly tolerance, minimum number of supplier for each component, technology capability of suppliers, production capacity for each supplier, and assembly demand. The left hand side of the equation expresses the variances accumulation of all the needed components in the assembly of final product which must be multiplied by the binary variable of suppliers selection denoted by xij. The right hand side of the equation is the maximum variance that must be attained to maintain the assembly quality

Minimum number of selected suppliers
Conclusions

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