Interactive Fuzzy Multi Criteria Decision Making Approach for Supplier Selection and Order Allocation in a Resilient Supply Chain

Abstract

Modern supply chains are vulnerable to high impact, low probability disruption risks. A supply chain usually operates in such a network of entities where the resilience of one supplier is critical to overall supply chain resilience. Therefore, resilient planning is a key strategic requirement in supplier selection decisions for a competitive supply chain. The aim of this research is to develop quantitative resilient criteria for supplier selection and order allocation in a fuzzy environment. To serve the purpose, a possibilistic fuzzy multi-objective approach was proposed and an interactive fuzzy optimization solution methodology was developed. Using the proposed approach, organizations can tradeoff between cost and resilience in supply networks. The approach is illustrated using a supply chain case from a garments manufacturing company.

Keywords

• resilient supply chain
• supplier selection
• fuzzy optimization
• disruption risks