Integrated selection of supply portfolio and scheduling of production

Abstract

The supplier selection and order quantity allocation are a medium- to short-term decision, driven by the time-varying customer demand. The scheduling horizon for supplies of parts coincides with the scheduling horizon for customer orders and to achieve the best results the supplier selection and order quantity allocation decisions should also be made for the same time horizon. The advantage of a joint decision making can be shown especially in the presence of supply chain disruption risks.