According to the growing competition in the global markets and the vital role of suppliers in making a business successful, the subject of supplier selection has highly attracted many researchers and practitioners working on related fields in recent years. In this paper, a new model has been developed to investigate the proper inventory management along with supplier selection in designing an integrated supply chain including: multiple suppliers and a manufacturer. In this system, different amounts of raw materials are purchased by the manufacturer from a chosen supplier to produce different products so that the customers’ demands are fulfilled by minimizing the total purchase, inventory, production and transportation costs in multiple periods where the discount conditions provided by suppliers have been taken into account. The model is illustrated using an example solved by an exact method. Finally, the effectiveness of the proposed model is demonstrated and the results are discussed and analyzed.

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