Supplier Selection for a Newsboy Model with Budget and Service Level Constraints

A style dress outlet usually purchases products from multiple suppliers with different cost, quality and selling price. It is assumed that some suppliers will sell their goods to the buyer outright, while some other suppliers will offer return policy for items unsold. In the latter case, the supplier buys back from the buyer the unsold items at the end of the selling season. The purpose of this study is to enable the buyer to develop a supplier selection and replenishment policy subject to limited budget. A minimal service level and uncertain market are assumed as well. Genetic algorithm (GA) is used to solve the problem.