Supply Chain Optimization for Single Vendor Multi-buyer and Multi-items With Imperfect Production

Abstract

This study explores the optimization of supply chain management for a single vendor serving multiple buyers with various items under conditions of imperfect production. Focusing on PT. Batik X Yogyakarta as a case study, the research aims to develop a mathematical model that minimizes the joint total cost for both the vendor and the buyers. The model integrates aspects of defective products and the coordination of orders among buyers to enhance overall efficiency. By applying a solution-solving evolutionary algorithm, the study validates the model's effectiveness through comparative analysis with and without coordination. Key components include a joint total cost (JTC) model and a joint economic lot sizing (JELS) approach. The findings demonstrate that coordinated strategies significantly reduce costs and improve the supply chain's performance, providing valuable insights for practical applications in industrial engineering and supply chain management.