Suppliers Prioritized, Demand Allocated to Maximize Purchase Value, Boost Supply Chain Efficiency
The article introduces a new method to manage costs in supply chains. It focuses on selecting the best suppliers and distributing customer demand efficiently. By combining supplier ratings and mathematical programming, the researchers developed a hybrid algorithm. This algorithm helps maximize purchase value while considering factors like budget, demand, and supplier capacity. The study found that supplier S3 is the top choice for demand allocation without restrictions, while supplier S2 is the best option under constrained conditions.