Supply Quota Allocation and its optimization in supply chain by Fuzzy programming Model

Appropriate vendor selection and their optimum quota allocation has been an area of high importance in the effective management of a supply chain. The optimization of vendor-base is needed to identify better performing vendors in a supply chain. Secondly their quota allocations need to be optimized for the organization to remain competitive in the global scenario. The Supplier Quota Allocation (SQA) concept ‘Multi-Objective Linear Programming Vendor Selection Problem the mathematical formulation of which incorporates three important goals- cost- minimization, rejection-minimization (or quality-maximization) and minimization of late-delivery- with practical constraints imposed on: meeting the manufacturing organization’s annual aggregate demand, vendors’ capacity, vendors’ quota flexibility, vendors’ rating etc. In FP formulation of a supply chain modeling, various input parameters are treated as vague with a linear membership function of fuzzy type.