Inventory management with supplier selection problem: Supply uncertainty

Supply uncertainty can have a very radical impact on firms who fail to protect against it. It appears that the quantity delivered by the supplier is random. In this paper, we develop a mixed integer non linear programming model for a mono-item multi-period inventory management decision and supplier selection problem under random yield. The yield of supplier is random. The buyer needs to answer three questions: how much to command? what is supplier selected? and in which period? The complexity of this problem is NP-hard. We used a genetic algorithm (GA) to solve this problem.