Supplier selection under uncertainty using Interval Compromise Programming

Abstract

Now days one of the main strategies and policies of firms is purchasing parts from external suppliers. For decision making about selecting suppliers, are considered the different criteria. But because of changes of management levels and external suppliers strategies, could not determine input data precisely. Hence, considering supplier selection problem with regard to the uncertain criteria is necessary. In this paper, a combinatorial model from the well-known method of Compromise Programming (CP) and Interval Programming will be proposed that is called Interval Compromise Programming (ICP). The model can be used for optimizing multi-objective interval problems. For illustrating the proposed model, will be presented a supplier selection problem by considering the objectives of minimizing rejects and purchase cost and maximizing quality of purchased products, where are considered the input parameters as interval numbers. The obtained results compared to the ideal value of each objective can present a representation from situation of optimistic and pessimistic of the problem under uncertainty.

Keywords

• compromise programming
• interval programming
• interval compromise programming
• supplier selection