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A New Optimization Method for Supplier Evaluation in the Context of Volume Discount

A New Optimization Method for Supplier Evaluation in the Context of Volume Discount
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Author(s): Reza Farzipoor Saen (Islamic Azad University-Karaj Branch, Iran)
Copyright: 2011
Pages: 12
Source title: Supply Chain Optimization, Management and Integration: Emerging Applications
Source Author(s)/Editor(s): John Wang (Montclair State University, USA)
DOI: 10.4018/978-1-60960-135-5.ch005

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Abstract

Supplier selection is a multiple criteria decision making problem that the selection process mainly involves evaluating a number of suppliers according to a set of common criteria for selecting suppliers to meet business needs. Suppliers usually offer volume discounts to encourage the buyers to order more. To select suppliers in the presence of both volume discounts and imprecise data, this chapter proposes an optimization method. A numerical example demonstrates the application of the proposed method.

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