A fuzzy multi-criteria decision model for integrated suppliers selection and optimal order allocation in the green supply chain

Abstract

Today, with the advancement of technology in the production process of various products, the achievement of sustainable production and development has become one of the main concerns of factories and manufacturing organizations. In the same vein, many manufacturers try to select suppliers in their upstream supply chains that have the best performance in terms of sustainable development criteria. In this research, a new multi-criteria decision-making model for selecting suppliers and assigning orders in the green supply chain is presented with a fuzzy optimization approach. Due to uncertainty in supplier capacity as well as customer demand, the problem is formulated as a fuzzy multi-objective linear programming (FMOLP). The proposed model for the selection of suppliers of SAPCO Corporation is evaluated. Firstly, in order to select and rank suppliers in a green supply chain, a network structure of criteria has defined with five main criteria of cost, quality, delivery, technology and environmental benefits. Subsequently, using incomplete fuzzy linguistic relationships, pair-wise comparisons between the criteria and sub-criteria as well as the operation of the options will be assessed. The results of these comparisons rank the existing suppliers in terms of performance and determine the utility of them. The output of these calculations (utility index) is used in the optimization model. Subsequently, in the order allocation process, the two functions of the target cost of purchase and purchase value are optimized simultaneously. Finally, the order quantity is determined for each supplier in each period.

Keywords

• Supplier selection
• Order allocation
• Fuzzy programming
• Network analysis