MATLAB Code of A proposed mathematical model for bi-level programming model in supplier selection based on decreasing procurement cost and increasing customer satisfaction levels

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Suitable suppliers Selection can substantially reduce purchasing costs and increase the competitiveness of the organization, because in most industries, the cost of raw materials and component products, a major portion of the cost of the product.

In planning a surface, there is a central decision and why this type of planning a centrally planned to say.

The two-level planning is a useful tool for modeling decentralized decision problems. This problem has two optimization problems with two level from authority levels that one of them is part of the constraints of other problem.  Decision-making at a lower level (the follower is called) has to function under the parameters given by the decision-making level (the leader is called) is optimal.

The research has two main decisions that minimize the cost of materials included in the Supply Chain Procurement and also to raise the maximum level of product quality and customer satisfaction.

Purchasing department on issues such as sourcing, selection of suppliers and supply chain management is related to the maximum level of customer satisfaction is also related to the needs of our customers.

The study is based on the literature that there is something similar to this, we will answer the question:

Is reached by the two levels can be selected suppliers?

References :

Croom, S., Romano, P., Giannakis, M., Supply chain management: an analytical framework for critical literature review. European Journal of Purchasing & Supply Management, 6(1), 67-83(2000).

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