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A multi-objective decision-making process of supplier selection and order allocation for multi-period scheduling in an electronic market

Fazlollahtabar, H ; Sharif University of Technology | 2011

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  1. Type of Document: Article
  2. DOI: 10.1007/s00170-010-2800-6
  3. Publisher: 2011
  4. Abstract:
  5. Supplier selection is a multi-criteria problem which includes both tangible and intangible factors. In these problems when suppliers have capacity or other different constraints, two questions persist: which suppliers are the best and how much should be purchased from a selected supplier? Here, we propose an integrated approach of analytic hierarchy process (AHP), Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS), and multi-objective nonlinear programming to consider both tangible and intangible factors in choosing the best suppliers and define the optimum quantities among selected suppliers to maximize the total value of purchasing and minimize the budget, total penalized earliness and tardiness, and defect rate. The priorities are calculated for each supplier by use of AHP. TOPSIS is applied to rank the suppliers. Finally, using the obtained weights, the optimal quantities of order to the suppliers are clarified in multi-period horizon. An application study presents the validity and efficiency of the proposed model. Moreover, a performance analysis has been worked out on the numerical example to investigate the capability and effectiveness of the results
  6. Keywords:
  7. Application studies ; Defect rate ; Earliness and tardiness ; Electronic market ; Ideal solutions ; Intangible factors ; Integrated approach ; Mathematical modeling ; Multi objective ; Multi-criteria ; Multi-period ; Multiobjective decision ; Numerical example ; Optimal quantity ; Order allocation ; Performance analysis ; Supplier selection ; Total values ; Computer simulation ; Decision theory ; Hierarchical systems ; Multiobjective optimization ; Numerical analysis ; Decision making
  8. Source: International Journal of Advanced Manufacturing Technology ; Volume 52, Issue 9-12 , February , 2011 , Pages 1039-1052 ; 02683768 (ISSN)
  9. URL: http://link.springer.com/article/10.1007%2Fs00170-010-2800-6