Supplier and Carrier Selection and Order Allocation by considering disruptions with AHP and Multi-objective Mathematical Programming

Abstract

In this study, supplier and carrier selection and order allocation are considered to go for joint decision-making. To this end, some criteria including cost, quality, delivery, resilience, social responsibility and supplier profile are determined to select the weight of each supplier by AHP. Then, multi objective mathematical model is developed to select the appropriate supplier and carrier and allocate orders of multi product with different discount levels in each period by suitable carriers to each supplier. The objective functions in this study are minimizing cost, delivery and the number of defective items, and maximizing the efficiency of suppliers. Moreover, some constraints such as inventory capacity, shortage capacity, number of vehicle and breakdowns of them and etc. are applied in this novel mathematical model. Finally, this model is solved by augmented ɛ-constraint method for determining pareto-optimal solution. This study can help decision makers to solve problem by integrating AHP and multi-objective model.

Keywords

• supplier and carrier selection
• order allocation
• resilience
• social responsibility
• price discount
• breakdown