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A Goal-Programming Model for Determining Economic Order Lot Sizing Regarding the Benefits of the Whole Supply Chain

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Author Affiliations

  • 1Management Department, Ferdowsi University of Mashhad, IRAN
  • 2 Accounting Department, Ferdowsi University of Mashhad, IRAN
  • 3 Department of Accounting, Torbat-e-Jam Branch, Islamic Azad University, Torbat-e-Jam, IRAN

Res. J. Recent Sci., Volume 3, Issue (2), Pages 8-15, February,2 (2014)

Abstract

Inpast, organizations used to make decisions independently; but, at the moment, ignoring the connections between those decisions and their related subgroups can yield serious and negative repercussions. So, the organizations tend to the integrated design and control for the whole segments to produce better services and goods. Nowadays, effective interaction with pieces suppliers and products distributers from the view of the managers is the key to survive in the competitive markets. In this respect, the present paper provides an ideal planning model for the effective integration of suppliers and customers regarding their common and favorite criteria to provide the benefits of both sides in Electrosteel Company. In this model, 3 measures of quality, time, and cost are considered and the benefits of both suppliers and customers are taken into account simultaneously. In this model, the order amount to the suppliers is determined. Also, two individual models considering the benefits at a chain level is provided and used with different weights of the model and benefit model. Also, two single entity models((1) and (2)) regarding the benefits of one chain level were provided and compared in different weights with multiple entity model of the benefits. Using fiscal year information of2010, Electrosteel Company and its suppliers were examined. The results showed that by exerting goal programming for creating win-win relations in supply chain with the aim of minimizing total costs, delayed order delivery, and increasing received goods better results are provided compared with single-entity models.

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