Supplier Selection Decisions Research Articles

Interval-valued intuitionistic fuzzy multi-attribute group decision-making method considering risk preference of decision-makers and its application

An improved interval-valued intuitionistic fuzzy multi-attribute group decision-making method considering the risk preference of decision-makers is proposed to solve the multi-attribute group decision-making problem with interval-valued intuitionistic fuzzy numbers and the condition that the attribute weight information is completely unknown. Firstly, the decision-maker weight of each attribute is determined by combining similarity and proximity. In order to consider the influence of the decision-maker's risk preference on the decision result and avoid the asymptotic behavior of interval-valued intuitionistic fuzzy matrix, the risk aversion coefficient of the decision-maker is introduced and combined with the determined decision-maker's weight aggregation to form a group decision matrix. Then, the information of group decision matrix is mined, and the interval-valued intuitionistic fuzzy entropy is used to determine the attribute weight and relative weight. Based on the interval-valued intuitionistic fuzzy distance measure formula and the TODIM method, the overall superiority of each scheme relative to other schemes is obtained by calculating the superiority between schemes, and the optimal scheme is determined by comparing and sequencing. Finally, the rationality and effectiveness of the proposed method are verified by an example of mechanical assembly supplier selection decision.

Strategic supplier selection: the importance of process formality in non-automated supplier selection decisions

Strategic supplier selection: the importance of process formality in non-automated supplier selection decisions

Sistem Pendukung Keputusan Pemilihan Supplier Pada PT. Avo Innovation Technology Dengan Metode Simple Addivite Weighting (SAW)

Subjective decision making can lead to errors in supplier selection. In the selection of suppliers, the OEM (Original Equipment Manufacturing) Department has difficulty in choosing suppliers, because many suppliers have submitted offers of cooperation. Therefore, we need a supplier selection decision support system so that the OEM department can determine the appropriate supplier in purchasing products, services and materials. This decision support system uses the SAW (Simple Additive Weighting) method where this method is used to overcome existing problems, because there are many alternatives and criteria that must be considered in supplier selection such as legality, quality management, production capacity, production quality and innovation. From the tests carried out by comparison through Microsoft Excel and the web-based SAW program at PT Avo Innovation Technology using 13 data suppliers to test system performance. It was concluded from the test that the percentage of system performance was 100%, so that this system could be implemented in the company.

Decision Support System Menggunakan Analytic Hierarchy Process dan Analytical Network Process Pada Pemilihan Supplier Bahan Baku

This study aims to determine the best supplier for the selection of raw materials for NPK fertilizer based on three suppliers as an alternative in making supplier selection decisions with 4 criteria (price, quality, service, and delivery) and sub-criteria that have been determined and then arranged into a hierarchical structure. The use of Super Decision software which contains analytical capabilities from AHP (Analytic Hierarchy Process) and Analytic Network Process (ANP) can analyze priority and selectability levels by prioritizing the weight of each criterion against other criteria. the most influential in the selection of suppliers of raw materials for NPK fertilizer with the first priority being the quality criteria, the second priority being the price criteria, the third priority being the delivery criteria and the fourth priority being the service, based on the criteria and sub-criteria in the supplier selection being the main priority, supplier PT.A with the highest weight value 0.56492.

A Novel Perspective to Sustainable Supplier Performance Evaluation Problem: A Case Study Based on Determining the Optimum Number of Clusters

In this study, it is aimed to contribute to the development of companies in order to reach the desired values utilizing the cluster features of the suppliers in a sustainable supplier evaluation process and to guide the supplier in this regard. The clustering features acquired at the end of the study will guide the determination of sustainable supplier criteria and potential new suppliers according to the sector and business line in future studies. The first step of the three-stage model is to apply the best–worst method to determine the weights of the criteria. At the second stage, suppliers are clustered together by the k-means algorithm and silhouette index method. At the third stage, suppliers are divided into categories, and suggestion policies for each supplier category are included. Then, sensitivity analysis has been performed to analyze the effects of variations of criteria weights on the result of the proposed model. Finally, to express the integrated method, a real-life sustainable supplier selection problem is solved and suppliers are categorized according to their similarities. Following evaluation, it was seen that the environmental management system and waste management criteria were the most critical criteria in the categorization of suppliers. When its reasons are investigated, sectoral characteristics come into prominence. The results indicate that the proposed model fits well as a multicriteria decision-making tool for sustainable supplier selection and evaluation decisions. Finally, it is predicted that this model will evaluate new suppliers or new products/services to be procured and selected from the set of features.

Supplier Menus for Dynamic Matching in Peer-to-Peer Transportation Platforms

Peer-to-peer transportation platforms dynamically match requests (e.g., a ride, a delivery) to independent suppliers who are not employed nor controlled by the platform. Thus, the platform cannot be certain that a supplier will accept an offered request. To mitigate this selection uncertainty, a platform can offer each supplier a menu of requests to choose from. Such menus need to be created carefully because there is a trade-off between selection probability and duplicate selections. In addition to a complex decision space, supplier selection decisions are vast and have systematic implications, impacting the platform’s revenue, other suppliers’ experiences (in the form of duplicate selections), and the request waiting times. Thus, we present a multiple scenario approach, repeatedly sampling potential supplier selections, solving the corresponding two-stage decision problems, and combining the multiple different solutions through a consensus algorithm. Extensive computational results using the Chicago Region as a case study illustrate that our method outperforms a set of benchmark policies. We quantify the value of anticipating supplier selection, offering menus to suppliers, offering requests to multiple suppliers at once, and holistically generating menus with the entire system in mind. Our method leads to more balanced assignments by sacrificing some “easy wins” toward better system performance over time and for all stakeholders involved, including increased revenue for the platform, and decreased match waiting times for suppliers and requests.

Integrating supplier selection, lot sizing and facility location decisions under a TBL approach: a case study

Triple bottom line (TBL) is one of the well-known frameworks for measuring the sustainability of a system in which environmental and social aspects are also considered together with the economic aspect. In this study, we consider the integrated supplier selection, lot sizing and facility location decisions and propose a two-phase decision framework based on TBL approach. In the first phase of the study, we use a trapezoidal type-2 fuzzy AHP algorithm for the initial evaluation of the suppliers based on various economic, environmental and social criteria, whereas in the second phase of the study, we propose a two-stage stochastic programming model for the integrated supplier selection, lot sizing and facility location decisions under supply and demand uncertainties. We also present a real-life case study to test the proposed decision framework. Computational results, on one hand, show the applicability of the proposed decision framework on real-life cases and, on the other hand, bring significant managerial insights. Particularly, we observe that all three pillars (economic, environmental and social) of sustainability are in conflict with each other and thus being both environmentally and socially responsible is much more costlier than being solely environmentally or socially responsible. Moreover, we observe that ignoring the uncertainties in the system may yield to higher costs and impractical results.

Implementation of a fuzzy decision support system for selection of hand tractor assembly suppliers

Supplier selection is a complex problem in the current Industry 4.0 era. The large number of suppliers with different performance qualities makes it difficult for the company's internal parties to choose the appropriate supplier. The suitability of quality suppliers needed to supply raw materials needed by the industry is an important matter to be resolved. In the hand tractor assembly industry, this small and medium industry is also very dependent on the availability of supply materials, and of course it also depends on the selection of the supplier itself. In this study, the object of research is the 151 hand tractor assembly manufacturing industry using 10 main criteria for selecting suppliers. Each criterion has a weight that is calculated using the Fuzzy AHP method so as to obtain alternative supplier results that are displayed in order.
 A supplier is a company or individual that provides the raw materials needed by the company and its competitors to produce certain goods. In this study, a decision support system for supplier selection at the company has been developed using the AHP fuzzy method. The results of this study are expected to help companies in selecting suppliers that match the predetermined criteria. In building a decision support system that provides supplier recommendations, the authors apply the AHP fuzzy method in the process. With the Supplier Selection Decision Support System Using the AHP Fuzzy Method, it can help companies in selecting suppliers. Based on the research that has been done, suggestions can be made for a Decision Support System for Supplier Selection Using the Fuzzy AHP Method so that in the future it can facilitate the use of a more dynamic system

Intuitive global sourcing – a study of supplier selection decisions by apparel SMEs

PurposeThe purpose of this paper is to create knowledge on the intuitive global sourcing process applied by small and medium-sized enterprise (SME) managers.Design/methodology/approachThis study reports on qualitative inquiries with experienced sourcing managers from 10 SMEs in the textile industry. The study follows a three-step semi-structured interviewing process, allowing us to gradually unveil the detailed nature of the intuitive supplier selection process.FindingsNine of the 10 SMEs rely on a highly intuitive supplier selections process, where one supplier at a time is gradually taken into the exchange while testing the supplier’s behavior. The process consists of an early heuristics sub-process, which gradually switches over to a more advanced intuiting behavioral pattern-matching process.Practical implicationsMost OM/SCM research has treated global sourcing and supplier selection as a highly rational, analytical and deliberate optimization problem. This study uncovers a completely different, and frequently successful, intuitive process, which could inspire managers in companies of all sizes, faced with high uncertainty about global supplier selection decisions.Originality/valueIntuition has recently been adopted in the global sourcing literature. However, this study is the first to offer detailed insights into a predominantly intuitive global sourcing process, specifically as it is managed by SMEs.

A supplier selection decision model using multi-criteria decision analysis in a small manufacturing company

Industry 4.0 and digitalization increasingly requires managers to make decisions in shorter time frames and at a higher level of accuracy. Among the many decision-making tools to help managers are multi-criteria decision-making methodologies (MCDM) such as Analytic Hierarchy Process (AHP) and Analytic Network Process (ANP). The aim of this paper is to develop a MCDM hierarchical model with specific attributes of AHP/ANP to aid the decision-making process of buying capital spare parts from different suppliers. The paper is based on a case study of the comparative application of AHP and ANP approaches in a manufacturing company that develops and produces parts. We consider the decision involving 3 suppliers of a capital spare part (SP) with 3 decision makers inherent in the process. For this model, 6 attributes were grouped into 2 hybrid criteria. The results obtained through the decision process using the AHP and ANP are then compared and discussed.

End-to-end sustainability: trade-offs, consumers’ perceptions and decisions beyond B2C interfaces

PurposeThis study aims to examine the extended effects of corporate (ir)responsibilities in supply chains. More specifically, the authors compare the impact of social and environmental initiatives and failures in the reputational capital of supply chain partners. The authors investigate how (and if) companies’ decisions to prioritize different sustainability dimensions in their supplier selection processes (i.e. sustainability trade-offs) affect consumers’ perception of corporate image, corporate credibility-expertise, attitude towards the firm and word-of-mouth.Design/methodology/approachThe authors conducted three behavioural vignette-based experiments with 562 participants from the USA, relying on analysis of variance and t-tests analyses.FindingsResults show that consumers perceive social irresponsibility cases as more severe than environmental ones in suppliers’ operations, penalizing buyers’ corporate image, corporate credibility-expertise and word-of-mouth. Corporate image, attitude towards the firm and word-of-mouth also have significant differences between social and environmental trade-offs. Statistically significant differences were also found between scenarios that portrayed the discovery of an irresponsible action and ones that reinforced the previous irresponsible practice in companies’ suppliers.Practical implicationsWhen types of irresponsibility practices are presented, the discovery of child labour and modern slavery conditions in suppliers damage how consumers perceive the company on corporate image and their attitude towards the organization and how they will spread word-of-mouth, reinforcing the importance of considering sustainability issues when making supplier selection decisions.Originality/valueThe study contributes to the understanding of how companies are perceived by their consumers regarding irresponsible practices and their impact on firms’ supplier selection decisions. Furthermore, data suggests that consumers might hierarchize sustainability dimensions, perceiving social irresponsibility cases as more severe than environmental irresponsibility ones.

SUPPLIER SELECTION AMONG DIFFERENT SCALE CONSTRUCTION COMPANIES USING FUZZY AHP AND FUZZY TOPSIS

Supplier selection is an important strategic decision for construction companies due to long-term project durations and high costs. In the construction sector, supplier selection decisions should take several criteria and alternatives into account. Along with the high number of alternative suppliers, choosing the best method to evaluate the alternative suppliers is another critical step. In this study, we compare the effectiveness of different multi-criteria decision‐making methods for selecting the most convenient supplier for construction companies. In this respect, we study the integration of powerful multi-criteria decision‐making methods, Fuzzy Analytic Hierarchy Process (AHP) and Fuzzy Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). We use Fuzzy AHP for the calculation of decision criteria weights, and then we apply Fuzzy TOPSIS for ranking the alternatives. Several interviews were made with the experts at construction companies and as a result of those interviews, 7 main criteria and 24 sub-criteria for comparing alternative suppliers of the companies were determined. We test our approach for two construction companies and use an integrated Fuzzy AHP and Fuzzy TOPSIS method to find the best supplier for the selected criteria. The contribution of this study is not limited to the multi-criteria decision-making methods for the supplier selection problem in the construction sector, but also we make a comparison of the supplier selection decisions of two different sized companies having the same supplier pool, and we show the effect of company based criteria weights in supplier selection.

Supplier selection with information disclosure in the presence of uninformed consumers

This paper investigates the impact of consumer's uncertainty as to quality preference on the retailer's supplier selection decision, and on supply chain pricing decisions. When the retailer adopts a single-supplier structure, both informed (knowing quality preference) and uninformed (not knowing quality preference) consumers are in the market, and the retailer has two different market-targeting strategies. An uninformed consumer can be informed by the presentation of two quality-differentiated products supplied by two suppliers, when the retailer selects dual-supplier structure and sells both products. We show that the dual-supplier structure is not always a dominant strategy when there exists a portion of uninformed consumers in the market. The retailer will choose the dual-supplier structure if the proportion of informed consumers is either low or very high, while it will choose a single high-quality supplier to target both consumer groups if the proportion of informed consumers is moderately high. Moreover, the retailer is more likely to adopt the low-price strategy targeting both informed and uninformed consumers when the proportion of the informed consumer in the market is lower; otherwise, it adopts a high-price strategy targeting informed consumers only. The impacts of the consumer's quality preference uncertainty on the retailer's supplier selection and on suppliers under the retailer's optimal supplier selection strategy are also examined. We also include numerical studies to illustrate main results.

Sustainable supplier selection based on industry 4.0 initiatives within the context of circular economy implementation in supply chain operations

This study proposes a decision framework based on industry 4.0 initiatives within circular economy implementation to evaluate and select sustainable suppliers. In this context, sustainable supplier selection, industry 4.0, and circular economy have emerged as key topics of the contemporary operations management debate. The mix method approach of combining literature review and industrial expert’s inputs was adopted to identify four main categories and twenty-one sub-categories relevant to the supplier selection decision. A multi-criteria decision-making support tool composed of the ‘best-worst method’ (BWM) and VIKOR (VlseKriterijumska Optimizacija I Kompromisno Resenje) was applied to aid in the evaluation and selection of a sustainable supplier in Pakistan’s textile manufacturing company. The BWM approach was first applied to determine the relative importance weights, and then, VIKOR used to rank the suppliers. The findings of the study suggest that, the Pakistan’s textile manufacturing company places much emphasis and importance on ‘Technological and Infrastructure (TI)’ with weight of 0.356 and ‘a positive organizational culture towards implementation of industry 4.0 and circular economy initiatives’ (OG3) with global weight of 0.139 when embarking on such decisions, and ranked supplier 2 as the top sustainable supplier. Managerial and post-selection benchmarking negotiations and future research directions are also introduced.

Tedarikçi Bağlılığını Etkileyen Faktörlerin Çok Kriterli Karar VermeYöntemleriyle Belirlenmesine Yönelik Bir Araştırma: Giresun İli Örneği(Multi-Criteria Decision Making of Factors Affecting Supplier Loyalty A Research to Determine Its Methods: The Case of Giresun Province)

Purpose – The main purpose of the study, in the province of Giresun in the hazelnut sector of the factors that influence the supplier's commitment to manufacturing enterprises (Trust, Dependency, resource, communication, shared values, social cohesion, the original investment, reputation and psychological Contracts) by the method of multicriteria decision making methods, the entropy is prioritized. Design/methodology/approach – The data used in the study were obtained through face-to-face interviews with business managers and academicians working in my hazelnut industry and a literature review. With the ENTROPI method, which is one of the multi-criteria decision making methods, the factors affecting supplier loyalty were prioritized. Findings – It has been determined that the most important factors for supplier loyalty are “Reputation”, “Original Investments” and “Resource”. It has been determined that the other most important criteria for supplier loyalty factors in hazelnut enterprises are Communication, Common Values and Trust, respectively. On the other hand, the Social Ties factor was the criterion with the least importance. The other least important factors were found to be Addiction, Psychological Contracts and Satisfaction, respectively. Discussions – In today's business world, where global competition is very high, the importance of supplier, supplier evaluation process and supplier selection decision is increasing every day. In particular, one way for companies to be sustainable is undoubtedly through supplier performance. Based on this point, establishing long-term relationships with suppliers and maintaining this relationship is considered and evaluated as a critical factor for companies that want to succeed in today's competitive conditions. A similar study involving provinces covering more comprehensive hazelnut production enterprises in the future can be investigated comparatively as the results of the priority of factors affecting supplier loyalty in the hazelnut sector between provinces. On the other hand, the problem examined in this study can be investigated to include other food sectors and the priority of supplier commitment can be determined through the eyes of different food sectors.

Assessment of site-specific greenhouse gas emissions of chemical producers: Case studies of propylene and toluene diisocyanate

The chemical industry accounts for 20% of global industrial greenhouse gas (GHG) emissions and the plastics production is increasing worldwide by approx. 4% annually. To reduce GHG emissions and increase GHG transparency in chemical value chains despite industrial secrets, we developed an approach to estimate the product carbon footprint of chemicals site-specifically without using classified production data. The new approach, is applied to two comparative case studies: propylene and toluene diisocyanate (TDI) production in Germany. The case study analyses 23 crackers on 17 production sites and four TDI production sites in Germany. The results indicate significant GHG emissions variations between productions sites (Cradle-to-Gate) that could not be quantified before. Among the production sites, product-specific GHG emissions range between 0.95 and 1.51 kgCO2e/kg propylene (reduction potential of GHG emissions of 37.1%) and between 3.17 and 3.62 kgCO2e/kg TDI (reduction potential of GHG emissions of 12.4%). This indicates massive differences in GHG efficiency in the production of propylene and TDI and an immense GHG emission reduction potential in the manufacture of plastic-intensive products (e.g. in the automotive sector) by increased transparency and informed supplier selection and procurement decision making. The method is transferable to chemical sites worldwide and indicates an even higher GHG reduction potential worldwide.

Supplier selection in the aftermath of a supply disruption and guilt: Once bitten, twice (not so) shy

ABSTRACTThe supply management literature assumes that supplier selection is devoid of emotions and unaffected by the history and experience associated with a previously‐selected supplier. In this paper, we relax these assumptions. Specifically, we consider the following sourcing opportunity: a sourcing professional had (alternatively, had not) recommended a critical‐component supplier that originated an avoidable (alternatively, unavoidable) supply disruption (aka, the “disrupted supplier”). In the aftermath of this supply disruption, the sourcing professional is asked to recommend a supplier for a new‐to‐beoutsourced critical component (i.e., one unrelated to the component whose flow was interrupted), taking into consideration the influence of guilt as an emotional reaction to the supply disruption. Analyses of data from 286 sourcing professionals participating in a scenario‐based, roleplaying experiment reveal that sourcing professionals experience higher levels of guilt when (a) they (versus their predecessor) had been responsible for selecting a disrupted supplier and (b) they deem the supply disruption to be controllable (versus uncontrollable) by the disrupted supplier. Guilt‐laden sourcing professionals are then more likely to recommend a riskier albeit more advantageous supplier for a new‐to‐be‐outsourced critical component. Our results provide the first evidence that prior supplier selection decisions gone awry influence future supplier selection decisions through the emotion of guilt. Moreover, they demonstrate that supply disruptions in one context have carryover effects on future sourcing decisions in unrelated contexts—an insight that is absent from the literature on supply disruptions.

Procurement portfolio planning for a newsvendor with supplier delivery uncertainty

We consider the problem of allocating procurement quantities for a required input to multiple suppliers in advance of a selling season with uncertain demand. Planning complexity is compounded by uncertainty in whether each supplier will deliver on time, in addition to the existence of an option for reserving capacity with a perfectly reliable supplier and the presence of a spot market for the input with an uncertain price. We apply analytical methods including two-stage stochastic programming with recourse, nonlinear optimization, and exact and efficient model-based heuristic solution methods. We show that for a selected supplier, the newsvendor’s conditional service level, given that the supplier delivers on time, equals a critical ratio value determined by the supplier’s cost and reliability parameters. Post-optimality analysis reveals interesting insights on the way reliability and cost parameters interact to determine whether a supplier receives a positive order allocation, as well as the impact of payment schemes on supplier selection decisions. The analysis clarifies an insightful relationship between the conditional service level and a critical ratio value for each selected supplier. The results also sharpen insights on the way relative supplier reliability and cost parameter values interact to determine an optimal supply portfolio. Furthermore, the ability to interpret a perfectly reliable supplier with a capacity reservation cost as an equivalent unreliable supplier reveals additional insights on the relative value of capacity reservation and facilitates direct comparison among seemingly disparate supply options.

Teknik Pengambilan Keputusan pada Pemilihan Supplier : A Literature Review

The presence of the internet and the development of technology make information exchange faster so that consumer preferences for products quickly change. This has an impact on increasingly shorter product life cycles. The company needs to improve the efficiency of supply chain performance in order to have competitive competitiveness. Supplier selection is one of the important activities in the purchasing process and has an impact on the design strategy of supply chain design. This research presents a literature review of supplier selection decision making methods for single sourcing and multiple sourcing cases by collecting articles from relevant international journals from 2010 to early 2020 to find research recommendations for supplier selection in the future. From the results of literature studies that have been carried out, it is necessary to develop a decision-making method that combines qualitative and quantitative criteria to select potential suppliers. The process of selecting suppliers that not only ranks but also determines cut-offs to distinguish which are included in the category of potential suppliers and which are not.

انتخاب هم‌زمان تأمین‌کنندگان و تعیین سیاست موجودی زنجیره‌های تأمین غیرقطعی چندمحصولی با رویکرد بهینه‌سازی مبتنی بر شبیه‌سازی

I‌n‌c‌r‌e‌a‌s‌i‌n‌g b‌u‌s‌i‌n‌e‌s‌s c‌o‌m‌p‌e‌t‌i‌t‌i‌v‌e‌n‌e‌s‌s f‌o‌r‌c‌e‌d c‌o‌m‌p‌a‌n‌i‌e‌s t‌o i‌m‌p‌r‌o‌v‌e t‌h‌e‌i‌r b‌u‌s‌i‌n‌e‌s‌s. T‌h‌e‌r‌e‌f‌o‌r‌e, i‌n‌d‌u‌s‌t‌r‌y m‌a‌n‌a‌g‌e‌r‌s h‌a‌v‌e f‌o‌u‌n‌d t‌h‌a‌t i‌t i‌s n‌e‌c‌e‌s‌s‌a‌r‌y t‌o f‌o‌c‌u‌s o‌n t‌h‌e s‌u‌p‌p‌l‌y o‌f p‌r‌o‌d‌u‌c‌t‌s i‌n a‌c‌c‌o‌r‌d‌i‌n‌g t‌o t‌h‌e w‌i‌s‌h‌e‌s o‌f t‌h‌e c‌u‌s‌t‌o‌m‌e‌r t‌h‌e q‌u‌a‌l‌i‌t‌y a‌n‌d t‌h‌e c‌o‌s‌t o‌f t‌h‌e‌i‌r i‌n‌t‌e‌n‌d‌e‌d u‌s‌e. W‌e c‌o‌n‌s‌i‌d‌e‌r a t‌h‌r‌e‌e-s‌t‌a‌g‌e s‌u‌p‌p‌l‌y c‌h‌a‌i‌n i‌n‌v‌o‌l‌v‌i‌n‌g m‌u‌l‌t‌i‌p‌l‌e s‌u‌p‌p‌l‌i‌e‌r‌s, m‌a‌n‌u‌f‌a‌c‌t‌u‌r‌e‌r p‌r‌o‌d‌u‌c‌i‌n‌g m‌u‌l‌t‌i‌p‌l‌e t‌y‌p‌e o‌f p‌r‌o‌d‌u‌c‌t a‌n‌d a f‌i‌n‌a‌l c‌u‌s‌t‌o‌m‌e‌r. A‌t e‌a‌c‌h o‌r‌d‌e‌r, t‌h‌e m‌a‌n‌u‌f‌a‌c‌t‌u‌r‌e‌r r‌e‌c‌e‌i‌v‌e‌s t‌h‌e r‌a‌w m‌a‌t‌e‌r‌i‌a‌l f‌r‌o‌m a s‌u‌p‌p‌l‌i‌e‌r b‌a‌s‌e‌d o‌n o‌p‌t‌i‌m‌a‌l p‌o‌l‌i‌c‌y i‌n a l‌o‌t o‌f s‌i‌z‌e Q. T‌h‌e p‌r‌o‌d‌u‌c‌t‌i‌o‌n p‌r‌o‌c‌e‌s‌s c‌o‌u‌l‌d p‌r‌o‌d‌u‌c‌e a‌d‌d‌i‌t‌i‌o‌n‌a‌l n‌o‌n‌c‌o‌n‌f‌o‌r‌m‌i‌n‌g p‌r‌o‌d‌u‌c‌t‌s, t‌h‌e m‌a‌n‌u‌f‌a‌c‌t‌u‌r‌e‌r c‌o‌u‌l‌d b‌e u‌n‌a‌v‌a‌i‌l‌a‌b‌l‌e d‌u‌e t‌o f‌a‌i‌l‌u‌r‌e‌s (f‌o‌l‌l‌o‌w‌i‌n‌g a g‌e‌n‌e‌r‌a‌l t‌i‌m‌e-t‌o f‌a‌i‌l‌u‌r‌e d‌i‌s‌t‌r‌i‌b‌u‌t‌i‌o‌n), a‌n‌d r‌e‌p‌a‌i‌r o‌p‌e‌r‌a‌t‌i‌o‌n‌s (f‌o‌l‌l‌o‌w‌i‌n‌g a g‌e‌n‌e‌r‌a‌l t‌i‌m‌e-t‌o-r‌e‌p‌a‌i‌r d‌i‌s‌t‌r‌i‌b‌u‌t‌i‌o‌n) p‌r‌o‌p‌o‌s‌e a c‌o‌n‌t‌r‌o‌l p‌o‌l‌i‌c‌y, w‌h‌i‌c‌h c‌o‌o‌r‌d‌i‌n‌a‌t‌e‌s s‌u‌p‌p‌l‌i‌e‌r s‌e‌l‌e‌c‌t‌i‌o‌n, r‌e‌p‌l‌e‌n‌i‌s‌h‌m‌e‌n‌t, p‌r‌o‌d‌u‌c‌t‌i‌o‌n a‌n‌d q‌u‌a‌l‌i‌t‌y i‌n‌s‌p‌e‌c‌t‌i‌o‌n d‌e‌c‌i‌s‌i‌o‌n‌s. U‌p‌o‌n r‌e‌c‌e‌p‌t‌i‌o‌n, t‌h‌e m‌a‌n‌u‌f‌a‌c‌t‌u‌r‌e‌r a‌p‌p‌l‌i‌e‌s a s‌i‌m‌p‌l‌e l‌o‌t-b‌y-l‌o‌t a‌c‌c‌e‌p‌t‌a‌n‌c‌e-s‌a‌m‌p‌l‌i‌n‌g p‌l‌a‌n w‌i‌t‌h a‌t‌t‌r‌i‌b‌u‌t‌e‌s. T‌h‌i‌s p‌l‌a‌n i‌s c‌h‌a‌r‌a‌c‌t‌e‌r‌i‌z‌e‌d b‌y a r‌a‌n‌d‌o‌m s‌a‌m‌p‌l‌e o‌f s‌i‌z‌e n a‌n‌d a‌n a‌c‌c‌e‌p‌t‌a‌n‌c‌e c‌r‌i‌t‌e‌r‌i‌o‌n c. B‌a‌s‌e‌d o‌n t‌h‌i‌s i‌n‌s‌p‌e‌c‌t‌i‌o‌n p‌l‌a‌n i‌f t‌h‌e n‌u‌m‌b‌e‌r o‌f n‌o‌n-c‌o‌n‌f‌o‌r‌m‌i‌n‌g i‌t‌e‌m‌s d f‌o‌u‌n‌d i‌n t‌h‌i‌s s‌a‌m‌p‌l‌e i‌s e‌q‌u‌a‌l t‌o o‌r l‌e‌s‌s t‌h‌a‌n c t‌h‌e l‌o‌t w‌i‌l‌l b‌e a‌c‌c‌e‌p‌t‌e‌d. O‌t‌h‌e‌r‌w‌i‌s‌e, t‌h‌e l‌o‌t w‌i‌l‌l b‌e r‌e‌f‌u‌s‌e‌d a‌n‌d r‌e‌t‌u‌r‌n‌e‌d t‌o i‌t‌s o‌r‌i‌g‌i‌n‌a‌l s‌u‌p‌p‌l‌i‌e‌r a‌n‌d t‌h‌e‌n a n‌e‌w o‌r‌d‌e‌r i‌s p‌l‌a‌c‌e‌d. A‌t t‌h‌i‌s i‌n‌s‌t‌a‌n‌t t‌h‌e m‌a‌n‌u‌f‌a‌c‌t‌u‌r‌e‌r i‌s n‌o‌t o‌b‌l‌i‌g‌e‌d t‌o k‌e‌e‌p t‌h‌e s‌a‌m‌e s‌u‌p‌p‌l‌i‌e‌r. H‌e c‌a‌n c‌h‌o‌o‌s‌e a‌n‌y o‌n‌e t‌h‌a‌t o‌f‌f‌e‌r‌s b‌e‌t‌t‌e‌r r‌e‌p‌l‌e‌n‌i‌s‌h‌m‌e‌n‌t c‌o‌n‌d‌i‌t‌i‌o‌n‌s. I‌n t‌h‌i‌s w‌o‌r‌k. w‌e a‌i‌m t‌o d‌e‌t‌e‌r‌m‌i‌n‌e t‌h‌e o‌p‌t‌i‌m‌a‌l c‌o‌n‌t‌r‌o‌l p‌o‌l‌i‌c‌y f‌o‌r s‌u‌p‌p‌l‌i‌e‌r s‌e‌l‌e‌c‌t‌i‌o‌n r‌e‌p‌l‌e‌n‌i‌s‌h‌m‌e‌n‌t a‌n‌d o‌p‌t‌i‌m‌a‌l q‌u‌a‌l‌i‌t‌y c‌o‌n‌t‌r‌o‌l d‌e‌c‌i‌s‌i‌o‌n‌s t‌h‌a‌t m‌i‌n‌i‌m‌i‌z‌e‌s t‌h‌e t‌o‌t‌a‌l c‌o‌s‌t w‌h‌i‌c‌h i‌n‌c‌l‌u‌d‌e‌s i‌n‌v‌e‌n‌t‌o‌r‌y, b‌a‌c‌k‌l‌o‌g, i‌n‌s‌p‌e‌c‌t‌i‌o‌n, r‌e‌p‌l‌e‌n‌i‌s‌h‌m‌e‌n‌t a‌n‌d p‌r‌o‌d‌u‌c‌t‌i‌o‌n c‌o‌s‌t‌s. C‌o‌o‌r‌d‌i‌n‌a‌t‌i‌n‌g d‌e‌c‌i‌s‌i‌o‌n‌s a‌l‌o‌n‌g t‌h‌e e‌n‌t‌i‌r‌e c‌h‌a‌i‌n i‌s c‌r‌i‌t‌i‌c‌a‌l s‌i‌n‌c‌e i‌t r‌e‌q‌u‌i‌r‌e‌s d‌e‌t‌e‌r‌m‌i‌n‌i‌n‌g c‌a‌r‌e‌f‌u‌l‌l‌y w‌h‌a‌t t‌o m‌a‌n‌u‌f‌a‌c‌t‌u‌r‌e a‌s w‌e‌l‌l a‌s w‌h‌a‌t w‌h‌e‌n a‌n‌d f‌r‌o‌m w‌h‌o‌m t‌o o‌r‌d‌e‌r. S‌o s‌i‌m‌u‌l‌a‌t‌i‌o‌n-b‌a‌s‌e‌d o‌p‌t‌i‌m‌i‌z‌a‌t‌i‌o‌n i‌s o‌n‌e o‌f t‌h‌e m‌e‌t‌h‌o‌d‌s f‌o‌r s‌o‌l‌v‌i‌n‌g t‌h‌i‌s p‌r‌o‌b‌l‌e‌m. N‌u‌m‌e‌r‌i‌c‌a‌l e‌x‌a‌m‌p‌l‌e‌s s‌h‌o‌w t‌h‌e e‌f‌f‌i‌c‌i‌e‌n‌c‌y o‌f t‌h‌e p‌r‌o‌p‌o‌s‌e‌d m‌e‌t‌h‌o‌d.