Abstract
Due to heightened concerns towards environmental issues and social responsibilities, manufacturers are becoming inclined towards investing in supplier development as suppliers play a crucial role in the sustainable performance of the supply chain. Hence, they are looking for effective supplier selection models which can also incorporate supplier development of underperforming suppliers. Since these decisions may have a huge financial impact, hence they must be taken after a strategic analysis of which suppliers to be developed. On how much cost will be incurred the manufacturer needs to perform another strategic supplier-related activity, i.e. supplier development for upgrading the performance of those underperforming suppliers. Hence, in order to maintain a network of competent suppliers and create a competitive advantage in the market, this study provides a framework for investigating the performance of suppliers under a sustainable environment, supplier development based on their performance and order allocation while optimizing the supply chain performance. The framework of this study consists of two integrated stages. First, the analytical hierarchy process (AHP) is utilized to calculate the weights of sustainable key performance indicators (KPIs) considered in the supplier evaluation process and the aggregated weights of each supplier. Second, these weights are then used as inputs to determine the appropriate development stage that should be assigned to each supplier for the development and optimal order quantities that should be ordered from each supplier by solving the optimization model through differential evolution (DE) algorithm. A real-life case study of an Indian home appliances manufacturing company is presented to show the validation of the proposed framework.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Luthra S, Govindan K, Kannan D, Mangla SK, Garg CP (2017) An integrated framework for sustainable supplier selection and evaluation in supply chains. J Clean Prod 140:1686–1698
Lima-Junior FR, Carpinetti LCR (2016) A multicriteria approach based on fuzzy QFD for choosing criteria for supplier selection. Comput Ind Eng 101:269–285
Ahmadi HB, Petrudi SHH, Wang X (2017) Integrating sustainability into supplier selection with analytical hierarchy process and improved grey relational analysis: a case of telecom industry. Int J Adv Manuf Technol 90(9–12):2413–2427
Lo HW, Liou JJ, Wang HS, Tsai YS (2018) An integrated model for solving problems in green supplier selection and order allocation. J Clean Prod 190:339–352
Foley C, Edwards D, Harrison BA (2018) Case study in collaborative supplier partnerships. In: Liburd DJ, Edwards DD (ed) Oxford: Goodfellow Publishers
Routroy S, Pradhan SK, Kumar CS (2016) Evaluating the implementation performance of a supplier development program. Asia Pac J Mark Logist (2016)
Yazdani M, Chatterjee P, Zavadskas EK, Zolfani SH (2017) Integrated QFD-MCDM framework for green supplier selection. J Clean Prod 142:3728–3740
Memari A, Dargi A, Jokar MRA, Ahmad R, Rahim ARA (2019) Sustainable supplier selection: a multi-criteria intuitionistic fuzzy TOPSIS method. J Manuf Syst 50:9–24
Ghadimi P, Toosi FG, Heavey C (2018) A multi-agent systems approach for sustainable supplier selection and order allocation in a partnership supply chain. Eur Oper Res 269(1):286–301
Mohammed A, Harris I, Govindan K (2019) A hybrid MCDM-FMOO approach for sustainable supplier selection and order allocation. Int J Prod Econ 217:171–184
Busse C, Schleper MC, Niu M, Wagner SM (2016) Supplier development for sustainability: contextual barriers in global supply chains. Int J Phys Distrib Logist Manag (2016)
Zhang M, Pawar KS, Bhardwaj S (2017) Improving supply chain social responsibility through supplier development. Prod Plan Control 28(6–8):500–511
Dastyar H, Rippel D, Freitag M (2020) Optimization of supplier development under market dynamics. Math Probl Eng
Dickson GW (1966) An analysis of vendor selection systems and decisions. J Purch 2(1):5–17
Vanalle RM, Santos LB (2014) Green supply chain management in Brazilian automotive sector. Manag Environ Qual An Int J
Sarkis J, Dhavale DG (2015) Supplier selection for sustainable operations: a triple-bottom-line approach using a Bayesian framework. Int Prod Econ 166:177–191
Hamdan S, Cheaitou A (2017) Supplier selection and order allocation with green criteria: An MCDM and multi-objective optimization approach. Comput Oper Res 81:282–304
Mani V, Agrawal R, Sharma V (2014) Supplier selection using social sustainability: AHP based approach in India. Int Strateg Manag Rev 2(2):98–112
Fallahpour A, Olugu EU, Musa SN, Wong KY, Noori S (2017) A decision support model for sustainable supplier selection in sustainable supply chain management. Comput Ind Eng 105:391–410
Govindan K, Rajendran S, Sarkis J, Murugesan P (2015) Multi criteria decision making approaches for green supplier evaluation and selection: a literature review. J Clean Prod 98:66–83
Azadnia AH, Saman MZM, Wong KY (2015) Sustainable supplier selection and order lot-sizing: an integrated multi-objective decision-making process. Int J Prod Res 53(2):383–408
Zimmer K, Fröhling M, Schultmann F (2016) Sustainable supplier management–a review of models supporting sustainable supplier selection, monitoring and development. Int J Prod Res 54(5):1412–1442
Gupta P, Govindan K, Mehlawat MK, Kumar S (2016) A weighted possibilistic programming approach for sustainable vendor selection and order allocation in fuzzy environment. Int J Adv Manuf Technol 86(5–8):1785–1804
Kumar D, Rahman Z, Chan FT (2017) A fuzzy AHP and fuzzy multi-objective linear programming model for order allocation in a sustainable supply chain: A case study. Int J Comput Integr Manuf 30(6):535–551
Rezaei J, Wang J, Tavasszy L (2015) Linking supplier development to supplier segmentation using best worst method. Expert Syst Appl 42(23):9152–9164
Diouf M, Kwak C (2018) Fuzzy AHP, DEA, and Managerial analysis for supplier selection and development; from the perspective of open innovation. Sustain 10(10):3779
Saaty TL (1980) The analytical hierarchy process, planning, priority. Resource allocation. RWS publications, USA
Storn R, Price K (1997) Differential evolution–a simple and efficient heuristic for global optimization over continuous spaces. J Glob Optim 11(4):341–359
Mozdgir A, Mahdavi I, Badeleh IS, Solimanpur M (2013) Using the Taguchi method to optimize the differential evolution algorithm parameters for minimizing the workload smoothness index in simple assembly line balancing. Math Comput Model 57(1–2):137–151
Haeri SAS, Rezaei J (2019) A grey-based green supplier selection model for uncertain environments. J Clean Prod 221:768–784
Alikhani R, Torabi SA, Altay N (2019) Strategic supplier selection under sustainability and risk criteria. Int J Prod Econ 208:69–82
Yu C, Shao Y, Wang K, Zhang L (2019) A group decision making sustainable supplier selection approach using extended TOPSIS under interval-valued Pythagorean fuzzy environment. Expert Syst Appl 121:1–17
Bhayana N, Gandhi K, Aditi, Jha PC (2019) An integrated supplier selection approach in supply chain system under fuzzy environment. Yugosl J Oper Res 29(4):483–505
Büyüközkan G (2012) An integrated fuzzy multi-criteria group decision-making approach for green supplier evaluation. Int Prod Res 50(11):2892–2909
Vahidi F, Torabi SA, Ramezankhani MJ (2018) Sustainable supplier selection and order allocation under operational and disruption risks. J Clean Prod 174:1351–1365
Azimifard A, Moosavirad SH, Ariafar S (2018) Selecting sustainable supplier countries for Iran’s steel industry at three levels by using AHP and TOPSIS methods. Resour Policy 57:30–44
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Aditi, Aggarwal, S. (2021). Performance-Based Supplier Selection and Order Allocation Model Incorporating Sustainable Development Strategies. In: Tiwari, A., Ahuja, K., Yadav, A., Bansal, J.C., Deep, K., Nagar, A.K. (eds) Soft Computing for Problem Solving. Advances in Intelligent Systems and Computing, vol 1393. Springer, Singapore. https://doi.org/10.1007/978-981-16-2712-5_46
Download citation
DOI: https://doi.org/10.1007/978-981-16-2712-5_46
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-16-2711-8
Online ISBN: 978-981-16-2712-5
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)