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A company is currently doing business with 5 suppliers for purchasing product. The necessary data are given below. Material Supplier 1 25 Supplier 2

 

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A company is currently doing business with 5 suppliers for purchasing product. The necessary data are given below. Material Supplier 1 25 Supplier 2 Supplier 3 26 23.5 Supplier 4 24 Supplier 5 27 cost/Unit Ordering 1000 1500 2000 3000 500 cost/lot Transportation 8 7.5 6 3 5 cost/unit Supply 10000 20000 5000 8000 7000 capacity Lead time of 10 20 19 18 35 order Quality 0.04 0.02 0.05 0.06 0.09 rejection percentage In the purchasing process the manufacturer set a permissible lead time of 25 days. The total demand is 15000. The manufacturer needs to give 12 percent tax on the purchasing amount. The ordering cost is required if an order is placed to the supplier. The manufacturer needs to consider the quality rejection for procurement decision. Write an algorithm for the problem and solve using lingo. What should be the order allocation to the suppliers? The allocation must be integer in nature.

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