Joint Decision on Supplier Selection and Trajectory Tracking Control of Multi-Product Inventory System

Sutrisno Sutrisno, Solikhin Solikhin


In this paper, we develop a mathematical model to determine the optimal joint decision for an integrated supplier selection and trajectory tracking control of multi-product inventory system. We develop two models which are a model in an integer quadratic programming for a case when all parameters including the demand of all products are certain and a model in a stochastic integer quadratic programming for a case when the at least one parameter is uncertain (in this research, at least a demand parameter is uncertain with some probability distribution). Some numerical experiments are given to evaluate the models with randomly generated supply chain data. We used multi-stage programming to solve the corresponding optimization problem. From the results, for all cases, the joint decision is obtained i.e. the optimal product volume purchased from each supplier and the inventory level of each product followed the reference level given by the decision maker.


Multi-stage programming; supplier selection; inventory control

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