An Integrated Supplier Selection Model Considering Permissible Delay in Payment

In the supplier selection problem considering both parties benefits including the buyer and the supplier, is one of the key factors to enhance the supply chain management performance as well as sustaining a long term relationship with the suppliers. In fact, the integrated supplier selection models have been discussed in order to confirm the aforementioned subject. In this research, an integrated supplier selection model is proposed in which each supplier offers a permissible delay in payment in order to attract the buyer and to gain higher market share. The goal of this model is to maximize the total supply chain revenue. The presented model is mixed integer nonlinear programming, and is solved by a professional package. Furthermore a genetic algorithm based heuristic has been developed for this matter as well, both methods are compared and the result is discussed.