Vendor selection and purchasing decisions

Lei Li*, Zelda B. Zabinsky

*Corresponding author for this work

Research output: Contribution to conferencePaperpeer-review


We would like to determine a minimal set of vendors and optimal order quantities from selected vendors to maximize quality, minimize late delivery and minimize cost including business volume discounts while satisfying the component demands under capacity limits of the vendors. In reality, the demands are usually unknown. Moreover, the capacities of vendors are not constant. Our stochastic programming model treats demand and capacity as random variables. We compare our stochastic programming model with recourse with a deterministic mixed integer programming model. Numerical experiments show that capturing uncertainty in a stochastic programming model provides more robust solutions than a deterministic mixed integer programming model.

Original languageEnglish
Publication statusPublished - 2006
Externally publishedYes
Event2006 IIE Annual Conference and Exposition - Orlando, FL, United States
Duration: 20 May 200624 May 2006


Conference2006 IIE Annual Conference and Exposition
Country/TerritoryUnited States
CityOrlando, FL


  • Stochastic programming
  • Uncertainty
  • Vendor selection problem

Cite this