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There is manufacturing company is sekking to select a supplier for one of the parts needed in its assembly process. The order quantity will be
There is manufacturing company is sekking to select a supplier for one of the parts needed in its assembly process. The order quantity will be 1000 units. There are five potential suppliers in the market for this part. The set of criteria considered by the members of the purchasing department are price, transportation cost, delivery time, supplier reliability for on-time delivery, and the defective part ratio in received orders. The performance of suppliers regarding these criteria is summarized in Table 1: Price Transportation cost Delivery time Reliability Defect ratio Supplier 1 $10 $1.1 1 (month) 80% 90% Supplier 2 $9.5 $1.2 1 (month) 70% 80% Supplier 3 $10.7 $0.95 1.25 (month) 95% 92% Supplier 4 $9.3 $1.2 1.6 (month) 75% 77% Supplier 5 $10.1 $0.9 1.5 (month) 80% 88% The total budget available for this purchase is $11,300 and the ratio of defective parts in the order should not violate 87%. All parts should be received within 1.5 months. If the manufacturer intents to make the purchase from at most two suppliers, develop an optimization model to select the most reliable suppliers for the manufacturer
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