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Article: A Benders-based heuristic for the robust capacitated international sourcing problem.
- Article from:
- IIE Transactions
- Article date:
- November 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 Institute of Industrial Engineers, Inc. (IIE). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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1. Introduction
The international sourcing problem consists of selecting a subset of suppliers from an available set of potential suppliers located internationally. The selected suppliers must meet the demand for items of a set of plants, which are also located worldwide. The selection process involves the optimization of an objective function that may be either a cost or a profit measure. In the version we shall discuss we deal with the objective of minimizing the cost of this selection. We consider the following costs:
* Selecting a supplier implies a fixed cost associated with such activities as technology transfer, quality programs and personnel ...