A model for supplier selection and manufacturing planning in make-to-order environment

This research concerns about the integrated decision making in the supply chain of make-to-order (MTO) manufacturer. We consider a MTO manufacturer with multiple stage assembly and single stage fabrication process. Two kinds of decisions arc taking into account in this paper: (1) manufacturing planning and (2) supplier selection process. The manufacturing planning decision concerns with the operation schedule and lot-sizing problems. Subsequently, the supplier selection problem is defined as determining the supplier to be selected for each material/parts and the allocated order quantity for each selected supplier. To solve the mentioned problem simultaneously, a mixed-integer-programming model is proposed in this paper.