Please use this identifier to cite or link to this item: https://doi.org/10.1021/ie070395w
Title: Optimal contract selection for the global supply and distribution of raw materials
Authors: Bansal, M. 
Karimi, I.A. 
Srinivasan, R. 
Issue Date: 26-Sep-2007
Source: Bansal, M., Karimi, I.A., Srinivasan, R. (2007-09-26). Optimal contract selection for the global supply and distribution of raw materials. Industrial and Engineering Chemistry Research 46 (20) : 6522-6539. ScholarBank@NUS Repository. https://doi.org/10.1021/ie070395w
Abstract: A multinational company's purchases go well beyond basic raw materials; they include catalysts, indirect materials, additives, etc. Strategic sourcing contracts offer several advantages and are common practice in many industries, especially the chemical industry. However, contracts come in various shades of price, commitments, duration, terms, flexibility, lead time, quality, discounts, product bundling, etc. Selecting the best contracts and suppliers for a company's globally distributed sites in an integrated and global business environment can be nontrivial. In this paper, we propose a relatively comprehensive classification of material supply contracts and propose a multiperiod mathematical programming model that selects optimal contracts for the minimum total procurement cost in the face of several practical considerations such as different contract types, multitier prices and discounts, logistics and inventory costs, quantity/dollar purchase commitments, spot market, product bundling, etc. The model also identifies the optimal distribution of materials from various suppliers to plant sites. Our examples demonstrate substantial savings over ad hoc or heuristic methods. © 2007 American Chemical Society.
Source Title: Industrial and Engineering Chemistry Research
URI: http://scholarbank.nus.edu.sg/handle/10635/64340
ISSN: 08885885
DOI: 10.1021/ie070395w
Appears in Collections:Staff Publications

Show full item record
Files in This Item:
There are no files associated with this item.

SCOPUSTM   
Citations

15
checked on Dec 6, 2017

WEB OF SCIENCETM
Citations

13
checked on Nov 21, 2017

Page view(s)

23
checked on Dec 10, 2017

Google ScholarTM

Check

Altmetric


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.