A multi-objective decision-making process of supplier selection and order allocation for multi-period scheduling in an electronic market

  • Hamed Fazlollahtabar
  • Iraj Mahdavi
  • Minoo Talebi Ashoori
  • Somayeh Kaviani
  • Nezam Mahdavi-Amiri
ORIGINAL ARTICLE

DOI: 10.1007/s00170-010-2800-6

Cite this article as:
Fazlollahtabar, H., Mahdavi, I., Ashoori, M.T. et al. Int J Adv Manuf Technol (2011) 52: 1039. doi:10.1007/s00170-010-2800-6

Abstract

Supplier selection is a multi-criteria problem which includes both tangible and intangible factors. In these problems when suppliers have capacity or other different constraints, two questions persist: which suppliers are the best and how much should be purchased from a selected supplier? Here, we propose an integrated approach of analytic hierarchy process (AHP), Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS), and multi-objective nonlinear programming to consider both tangible and intangible factors in choosing the best suppliers and define the optimum quantities among selected suppliers to maximize the total value of purchasing and minimize the budget, total penalized earliness and tardiness, and defect rate. The priorities are calculated for each supplier by use of AHP. TOPSIS is applied to rank the suppliers. Finally, using the obtained weights, the optimal quantities of order to the suppliers are clarified in multi-period horizon. An application study presents the validity and efficiency of the proposed model. Moreover, a performance analysis has been worked out on the numerical example to investigate the capability and effectiveness of the results.

Keywords

Supplier selectionOrder allocationDecision makingMathematical modeling

Copyright information

© Springer-Verlag London Limited 2010

Authors and Affiliations

  • Hamed Fazlollahtabar
    • 1
  • Iraj Mahdavi
    • 1
  • Minoo Talebi Ashoori
    • 2
  • Somayeh Kaviani
    • 2
  • Nezam Mahdavi-Amiri
    • 3
  1. 1.Department of Industrial EngineeringMazandaran University of Science and TechnologyBabolIran
  2. 2.Department of Business AdministrationMazandaran University of Science and TechnologyBabolIran
  3. 3.Faculty of Mathematical SciencesSharif University of TechnologyTehranIran