A hybrid model for supplier selection and order allocation in supply chain

Document Type : Research Paper

Authors

School of Industrial Engineering, College of Engineering, University of Tehran, I.R. Iran

Abstract

Performance of a supply chain highly depends on its suppliers and therefore, appropriate selection of them is of great importance. This paper presents an integrated model of an MCDM method and a mathematical programming in order to select suppliers and determine lot sizes in the supply chain. The proposed framework comprises two main sub-models; the qualitative sub-model seeks to evaluate the suppliers by means of Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS). Then, in the quantitative sub-model, a mixed integer nonlinear program is proposed in order to determine the optimal orders allocated to each supplier. Fuzzy multi-objective method (TH) is used to tackle complexity of the model. The most notable features of the proposed model is considering different quality levels and related defective rates as well as partial supplier switch. Finally, to demonstrate applicability of the proposed model and superiority of the developed algorithm, several problem instances are generated and solved.

Keywords

Main Subjects

References

  1. Bruno, G., Esposito, E., Genovese, A., and Passaro, R. (2012). “AHP-based approaches for supplier evaluation: Problems and perspectives.” J. Purchas. Supply Manag., Vol. 18, No. 3, 159-172.
  2. De Boer, L., Labro, E., and Morlacchi, P. (2001). “A review of methods supporting supplier selection.” Eur. J. Purchas. Supply Manag., Vol. 7, No. 2, 75-89.
  3. Dickson, G. W. (1966). “An analysis of vendor selection systems and decisions.” J. Purchas., Vol. 2, No. 1, 5-17.
  4. Vokurka, R. J., Choobineh, J., and Vadi, L. (1996). “A prototype expert system for the evaluation and selection of potential suppliers.” Int. J. Oper. Prod. Manag., Vol. 16, No. 12, 106-127.
  5. Lin, C. W. R., and Chen, H. Y. S. (2004). “A fuzzy strategic alliance selection framework for supply chain partnering under limited evaluation resources.” Comput. Indust., Vol. 55, No. 2, 159-179.
  6. Wu, C. and Barnes, D. (2010). “Formulating partner selection criteria for agile supply chains: A Dempster–Shafer belief acceptability optimisation approach.” Int. J. Prod. Econ., Vol. 125, No. 2, 284-293.
  7. Weber, C. A., Current, J. R., and Benton, W. C. (1991). “Vendor selection criteria and methods.” Eur. J. Operat. Res., Vol. 50, No. 1, 2-18.
  8. Weber, C. A. and Ellram, L. M. (1993). “Supplier selection using multi-objective programming: a decision support system approach.” Int. J. Physic. Distrib. Log. Manag., Vol. 23, No. 2, 3-14.
  9. Wu, T. and Blackhurst, J. (2009). “Supplier evaluation and selection: an augmented DEA approach.” Int. J. Prod. Res., Vol. 47, No. 16, 4593-4608.

10. Saen, R. F. (2010). “Developing a new data envelopment analysis methodology for supplier selection in the presence of both undesirable outputs and imprecise data.” Int. J. Adv. Manuf. Tech., Vol. 51, No. 9, 1243-1250.

11. Zeydan, M., Çolpan, C., and Çobanoğlu, C. (2011). “A combined methodology for supplier selection and performance evaluation.” Expert Syst. Appl., Vol. 38, No. 3, 2741-2751.

12. Hinkle, C. L., Robinson, P. J., and Green, P. E. (1969). “Vendor evaluation using cluster analysis.” J. Purchas., 5(3), 49-58. Vol. 5, No. 3, 49-58.

13. Holt, G. D. (1998). “Which contractor selection methodology?” Int. J. Project Manag., Vol. 16, No. 3, 153-164.

14. Che, Z. H. (2010). “A two-phase hybrid approach to supplier selection through cluster analysis with multiple dimensions.” Int. J. Innov. Comput. Inf. Cont., Vol. 6, No. 9, 4093-4111.

15. Zenz, G. J. and Thompson, G. H. (1994). “Purchasing and the Management of Materials.” Wiley.

16. Timmerman, E. (1987). “An approach to vendor performance evaluation.” Eng. Manag. Rev., IEEE, Vol. 15, No. 3, 14-20.

17. Humphreys, P. K., Wong, Y. K., and Chan, F. T. S. (2003). “Integrating environmental criteria into the supplier selection process.” J. of Mater. Proc. Tech., Vol. 138, No. 1, 349-356.

18. Choy, K. L., Lee, W. B., and Lo, V. (2002). “An intelligent supplier management tool for benchmarking suppliers in outsource manufacturing.” Expert Syst. Appl., Vol. 22, No. 3, 213-224.

19. Choy, K. L., Lee, W. B., Lau, H., Lu, D., and Lo, V. (2004). “Design of an intelligent supplier relationship management system for new product development.” Int. J. Comput. Integ. Manuf., Vol. 17, No. 8, 692-715.

20. Montazer, G. A., Saremi, H. Q., and Ramezani, M. (2009). “Design a new mixed expert decision aiding system using fuzzy ELECTRE III method for vendor selection.” Expert Syst. Appl., Vol. 36, No. 8, 10837-10847.

21. Ko, C. S., Kim, T., and Hwang, H. (2001). “External partner selection using tabu search heuristics in distributed manufacturing.” Int. J. Prod. Res., Vol. 39, No. 17, 3959-3974.

22. Amid, A., Ghodsypour, S. H., and O’brien, C. (2006). “Fuzzy multiobjective linear model for supplier selection in a supply chain.” Int. J. Prod. Econ., Vol. 104, No. 2, 394-407.

23. Jarimo, T. and Salo, A. (2009). “Multi criteria partner selection in virtual organizations with transportation costs and other network interdependencies.” Syst., Man, Cyber., Part C: Appl. Rev., IEEE Trans., Vol. 39, No. 1, 124-129.

24. Geoffrion, A. M. and Graves, G. W. (1974). “Multi commodity distribution system design by Benders decomposition.” Manag. Sci., Vol. 20, No. 5, 822-844.

25. Tam, M. C. and Tummala, V. M. (2001). “An application of the AHP in vendor selection of a telecommunications system.” Omega, Vol. 29, No. 2, 171-182.

26. Sarkis, J., Talluri, S., and Gunasekaran, A. (2007). “A strategic model for agile virtual enterprise partner selection.” Int. J. Oper. Prod. Manag., Vol. 27, No. 11, 1213-1234.

  1. 27.  Ravindran, A. R., Ufuk Bilsel, R., Wadhwa, V., and Yang, T. (2010). “Risk adjusted multicriteria supplier selection models with applications.” Int. J. Prod. Res., Vol. 48, No. 2, 405-424.

28. Choudhary, D. and Shankar, R. (2014). “A goal programming model for joint decision making of inventory lot-size, supplier selection and carrier selection.” Comput. & Indust. Eng., Vol. 71, 1-9.

29. Vanteddu, G., Chinnam, R. B., and Gushikin, O. (2011). “Supply chain focus dependent supplier selection problem.” Int. J. Prod. Econ., Vol. 129, No. 1, 204-216.

30. Nazari-Shirkouhi, S., Shakouri, H., Javadi, B., and Keramati, A. (2013). “Supplier selection and order allocation problem using a two-phase fuzzy multi-objective linear programming.” Appl. Math. Model., Vol. 37, No. 22, 9308-9323.

31. Kannan, D., Khodaverdi, R., Olfat, L., Jafarian, A., and Diabat, A. (2013). “Integrated fuzzy multi criteria decision making method and multi-objective programming approach for supplier selection and order allocation in a green supply chain.” J. of Clean. Prod., Vol. 47, 355-367.

32. Shaw, K., Shankar, R., Yadav, S. S., and Thakur, L. S. (2012). “Supplier selection using fuzzy AHP and fuzzy multi-objective linear programming for developing low carbon supply chain.” Exp. Syst. Appl., Vol. 39, No. 9, 8182-8192.

33. Guo, C. and Li, X. (2014). “A multi-echelon inventory system with supplier selection and order allocation under stochastic demand.” Int. J. Prod. Econ., Vol. 151, 37-47.

34. Mendoza, A. and Ventura, J. A. (2012). “Analytical models for supplier selection and order quantity allocation.” Appl. Math. Model., Vol. 36, No, 8, 3826-3835.

35. Lee, A. H., Kang, H. Y., Lai, C. M., and Hong, W. Y. (2013). “An integrated model for lot sizing with supplier selection and quantity discounts.” Appl. Math. Model., Vol. 37, No. 7, 4733-4746.

36. Zhang, J. L. and Zhang, M. Y. (2011). “Supplier selection and purchase problem with fixed cost and constrained order quantities under stochastic demand.” Int. J. Prod. Econ., Vol. 129, No. 1, 1-7.

37. Deng, X., Hu, Y., Deng, Y., and Mahadevan, S. (2014). “Supplier selection using AHP methodology extended by D numbers.” Exp. Syst. Appl., Vol. 41, No. 1, 156-167.

38. Theißen, S. and Spinler, S. (2014). “Strategic analysis of manufacturer-supplier partnerships: An ANP model for collaborative CO2 reduction management.” Eur. J. Oper. Res., Vol. 233, No. 2, 383-397.

39. Dargi, A., Anjomshoae, A., Galankashi, M. R., Memari, A., and Tap, M. B. M. (2014). “Supplier Selection: A Fuzzy-ANP Approach.” Procedia Comput. Sci., Vol. 31, 691-700.

40. Zouggari, A. and Benyoucef, L. (2012). “Simulation based fuzzy TOPSIS approach for group multi-criteria supplier selection problem.” Eng. Appl. Artif. Intel., Vol. 25, No. 3, 507-519.

41. Roshandel, J., Miri-Nargesi, S. S., and  Hatami-Shirkouhi, L. (2013). “Evaluating and selecting the supplier in detergent production industry using hierarchical fuzzy TOPSIS.” Appl. Math. Model., Vol. 37, No. 24, 10170-10181.

42. Razmi, J. and Rafiei, H. (2010). “An integrated analytic network process with mixed-integer non-linear programming to supplier selection and order allocation.” Int. J. Adv. Manuf. Tech., Vol. 49, No. 9, 1195-1208.

43. Tavakkoli-Moghaddam, R., Javadian, N., Javadi, B., and Safaei, N. (2007). “Design of a facility layout problem in cellular manufacturing systems with stochastic demands.” Appl. Math. Comput., Vol. 184, No. 2, 721-728.

44. Torabi S. A. and Hassini E. (2008). “An interactive possibilistic programming approach for multiple objective supply chain master planning.” Fuzzy Set. Syst., Vol. 159, No. 2, 193-214.

Advances in Industrial Engineering
Volume 49, Issue 1 - Serial Number 1
بهار و تابستان
April 2015
Pages 117-128

Files

Share

How to cite

Statistics