Abstract
One of the most important strategic decisions of any company is that of purchasing. For many firms, purchase from outside suppliers account for a large percentage of their total operation cost. However, purchasing is a professional activity now in transition. In most leading firms today, the function was previously called purchasing has expanded to become supply management. Supply management participate in new product development and are responsible for selecting source, managing cost, developing supplier partnership and issue long-term agreements with carefully selected suppliers. Material coordinators are responsible for placing orders against these purchase agreement, keeping the production lines running, and also minimizing inventories. This research considers multi-item-ordering and supplier selection problem subject to quantity discount and multiple resource constraints. Independent cycle approach and fixed cycle approach are used to solve this problem. The computational results showed that the fixed cycle approach is more cost-effective in most cases, especially under the condition of many suppliers; less discount percentage and both higher and lower holding cost.