Abstract
This study develops a mathematical model to optimize the partial delivery components allocation. This is one of a tactic of planning that be needed in a supply disruption situation. The new model considers the secondary supplier as a buffer. The order is triggered as soon as the primary supplier is disrupted. However, the component price is usually higher than buying from the primary supplier. Thus, we must investigate the model’s performance compared to existing allocation schemes. The mathematical model is linear programming and coded in AMPL language. The real-industrial data were excerpted and tested on a cloud computing service. The result was compared in terms of the total cost with the conventional value-at-risk policy, fair allocation scheme, and the company’s practice, the greedy procedure. The proposed method yields a lower total cost compared to other allocation schemes.
Publisher
Trans Tech Publications Ltd
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