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

Document Type : Research Paper


School of Industrial and Systems Engineering, College of Engineering, University of Tehran, Tehran, Iran


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.


Main Subjects

Basnet, C., Leung, J.M.Y., (2005). Inventory lot-sizing with supplier selection, Computer and Operations Research, Vol. 32, pp. 1–14.
Bevilacqua, M., Ciarapica, F.E., Giacchetta, G., (2006). A fuzzy-QFD approach to supplier selection, Journal of Purchasing & Supply Management, Vol. 12, pp. 14–27.
Chen, C.T., Lin, C.T., Huang, S.F., (2006). A fuzzy approach for supplier evaluation and selection in supply chain management, International Journal of Production Economy, Vol. 102, pp. 289–301.
Choudhary, D., Shankar, R., (2011). Modeling and analysis of single item multiperiod procurement lot-sizing problem considering rejections and late deliveries, Computers & Industrial Engineering, Vol. 61, pp. 1318–1326.
Demirtas, E.A., Ustun, O., (2009). Analytic network process and multi-period goal programming integration in purchasing decisions, Computers & Industrial Engineering, Vol. 56(2), pp. 677–690.
Dickson, G., (1966). An analysis of vendor selection systems and decisions, Journal of Purchasing, Vol. 2, pp. 28–41.
Ha, B., Park, Y., Cho, S., (2011). Suppliers’ affective trust and trust in competency in buyer, International Journal of Operation Production Management, Vol. 31, pp. 56–77.
Haimes, Y.Y., Wismer, D.A., Lasdon, D.S., (1971). On bi-criterion formulation of the integrated systems identification and system optimization, IEEE Transaction System Manufacturing Cybern SMC, Vol. 1, pp. 296–297.
Hollnagel, E., (2006). Resilience: the challenge of the unstable. In: Hollnagel, E., Woods, D., Leveson, N. (Eds.), Resilience Engineering: Concepts and Precepts. Ashgate, London, pp. 8–17.
Kannan, V.R., Tan, K.C., (2002). Supplier selection and assessment: Their impact on business performance, Journal of Supply Chain Management, Vol. 38, pp. 11–21.
Lee, A.H.I., Kang, H.Y., Lai, C.M., Hong, W.Y., (2013). An integrated model for lot sizing with supplier selection and quantity discounts, Applied Mathematical Modelling, Vol. 37, pp. 4733–4746.
Liao, Z., Rittscher, J., (2007). Integration of supplier selection, procurement lot sizing and carrier selection under dynamic demand conditions, International Journal of Production Economics, Vol. 107, pp. 502–510.
Mafakheri, F., Breton, M., Ghoniem, A., (2011). Supplier selection-order allocation: a two stage multiple criteria dynamic programming approach, International Journal of Production Economics, Vol. 132, pp. 52-57.
Mansini, R., Tocchella, B., Savelsbergh, M., (2012). The supplier selection problem with quantity discounts and truck load shipping, Omega, Vol. 40, pp. 445–455.
Razmi, J., Rafiei, H., 2010. An integrated analytic network process with mixed integer non-linear programming to supplier selection and order allocation, International Journal of Advance Manufacturing Technology, Vol. 49, pp. 1195–1208.
Rezaei, J., Davoodi, M., (2008). A deterministic, multi-item inventory model with supplier selection and imperfect quality, Applied Mathematical Modelling, Vol. 32, pp. 2106–2116.
Rezaei, J., Davoodi, M., (2011). Multi objective models for lot-sizing with supplier selection, International Journal of Production Economics, Vol. 130(1), pp. 77–86.
Simchi-Levi, D., Kaminsky, P., Simchi-Levi, E., (2003). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies, 2nd ed., McGraw-Hill, Boston, MA.
 Thrulogachantar, P., Zailani, S., (2011). The influence of purchasing strategies on manufacturing performance, Journal of Manufacture Technology Management, Vol. 22, pp. 641–663.
Ustun, O., Demirtas, E.A., (2008a). An integrated multi-objective decision-making process for multi-period lot-sizing with supplier selection, Omega, Vol. 36, pp. 509–521.
Ustun, O., Demirtas, E.A., (2008b). Multi-period lot-sizing with supplier selection using achievement scalarizing functions, Computers & Industrial Engineering, Vol. 54(4), pp. 918–931.
Wilson, E.J., (1994). The relative importance of supplier selection criteria: A review and update, International Journal of Purchasing and Materials Management, Vol. 30, pp. 34–41.
 Zhang, W.J., Lin, Y., (2010). On the principle of design of resilient systems—application to enterprise information systems, Enterprise Information Systems, Vol. 4, pp. 99–110.