211 Supply Chain Optimization under Demand Uncertainty Incorporating Contract Decision with Suppliers

Abstract

The supply chain optimization method incorporating contract decision with suppliers considering quantity discount policy is introduced. The model is to resolve the contract price, purchasing, and production and inventory which are under demand uncertainty simultaneously in order to integrate manufacturing, the flow of materials and the sales efficiently. The target in this paper is the single manufacturer, and the objective is to maximize its total profit. The computational results demonstrate the effectiveness of the proposed algorithm.