DECISION SUPPORT SYSTEM DEVELOPMENT TO SOLVE OPTIMIZATION MODEL FOR MULTI-PRODUCT MULTI-PERIOD MULTI-SUPPLIER RAW-MATERIAL SELECTION AND COMPOSITION, AND ORDER QUANTITY PROBLEM WITH MINIMUM ONE-YEAR ORDER QUANTITY CONTRACT

• Main Author: Rizka Fadhli, Mohammad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/77545
• Institution: Institut Teknologi Bandung

This paper concerns the decision support system development to solve optimization model for a multi-product multi-period raw-material selection and composition, and order quantity problem faced by a beverage company. Therefore, the model building is the key. There are some criteria in raw material selection, which we accommodate all the criteria in the objective function. There are a number of suppliers, and one of the decision criteria is minimum one-year order quantity contract between the company and the suppliers. The actual one-year demand of raw materials may deviate significantly from the minimum one-year order quantities. In this paper, we derive a function that can be regarded as a penalty function in order to maintain the total order quantities in one year fulfil the minimum one-year order quantity contracts. This penalty function is a part of the objective function and can be relaxed once the minimum one-year order quantity contracts are fulfilled. We performed a number of numerical experiments to check the optimal solutions for various demands and for various objective functions. These experiments show our MILP gives the desired optimal solutions and also show the influence of decision criteria on the optimal solution. We develop decision support system using R programming language in shinyapps..