Issue: 2013/Vol.23/No.2, Pages 43-54
MULTI-CRITERIA MODEL FOR DETERMINING ORDER SIZE
Katarzyna Jakowska-Suwalska
Cite as: K. Jakowska-Suwalska. Multi-criteria model for determining order size. Operations Research and Decisions 2013: 23(2), 43-54. DOI 10.5277/ord130204
Abstract
A multi-criteria model for determining the order size for materials used in production has been presented. It was assumed that the consumption rate of each material is a random variable with a known probability distribution. Using such a model, in which the purchase cost of materials ordered is limited, three criteria were considered: order size, probability of a lack of materials in the production process, and deviations in the order size from the consumption rate in past periods. Based on an example, it has been shown how to use the model to determine the order sizes for polyurethane adhesive and wood in a hard-coal mine.
Keywords: multicriteria decision support, stock control, material requirement planning
Received: Accepted: