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Manuscript ID : 537259 Visit : 127 Page: 97 - 122

Article Type: Original Research

Suppliers’ Selection Problem in Multiple Sourcing Cases under Uncertainty Environment: Models and Solution Procedures

Subject Areas : Industrial Management

Leyla Fazli 1 ( M.Sc. Graduate in Industrial Engineering, University of Kurdistan, Sanandaj, Iran )
Alireza Eydi 2 ( Assist. Prof. in Department of Industrial Engineering, University of Kurdistan, Sanandaj, Iran )

Received: 2018-01-07 Accepted : 2018-01-07 Published : 2014-11-22

Keywords:

Abstract :

All existent activities in the supply chain are to supply market demand by providing products with maximum quality, minimum price and in due date to customers. Due to suppliers have the basic role on criteria: cost, quality, etc. at access to the goals of the supply chain, suppliers are a critical component of an organization that can have an effect on the performance of the organization. Because of these diverse effects, accurate and efficient techniques application seems to be necessary for suppliers’ evaluation and selection and order allocation to them. Thus, the wide range of techniques has been presented by several researchers to examine suppliers’ selection problem. Therefore, in this paper first, the suppliers’ selection problem and process are explained. Then, methods and some studies for each stage of the suppliers’ selection process is presented. Since suppliers’ selection problem often face with uncertainty and constraints for buyer and suppliers in the real world, some done researchers in multiple sourcing fields under uncertainty environment are only studied in the last stage of the suppliers’ selection process. Finally, conclusion and suggestions are provided for future research.  

References:


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    2.
  2. Abginehchia, S., Zanjirani Farahanib, R., & Rezapour, S. (2013).  A mathematical model for order splitting in a multiple supplier single - item inventory system. Journal of Manufacturing Systems, 32, 55 - 67.
    3.
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  5. Amorim, P., Almada - Lobo, B., Barbosa - Póvoa, A. P. F. D., & Grossmann, I.E. (2014) . Combining Supplier Selection and Production - Distribution Planning in Food Supply Chains. Computer Aided Chemical Engineering, 33, 409 -  414.
    6.
  6. Arikan, F. (2013) . A fuzzy solution approach for multi objective supplier selection. Expert Systems with Applications, 40, 947 - 952.
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  7. Assadipour, G., Razmi, J. (2013) . Possibilistic inventory and supplier selection model for an assembly system. International Journal of Advanced Manufacturing Technology, 67, 575 - 587.
    8.
  8. Awasthi, A., Chauhan, S. S., Goyal, S. K., Proth, J. M., (2009). Supplier selection problem for a single manufacturing uni under stochastic demand. Int. J. Production Economics, 117, 229 - 233.
    9.
  9. Azadnia, A. H., Zameri Mat Samana, M., Wonga, K. Y., Ghadimi, P., Zakuanc, N. (2012) . Sustainable supplier selection based on self - organizing map neural network and multi criteria decision making approaches. Procedia - Social and Behavioral Sciences, 65, 879 - 884.
    10.
  10. Azar, A., (2000) . Data development analysis (DEA) and Analytic Hierarchy Process (AHP) : Comparative Study. Journal of Management Studies, 28, 129 - 146 (In Persian) .
    11.
  11. Azizi, A., Yarmohammadi, Y., & Yasini, A. (2015). Superior supplier selection - A joint approach of taguchi, AHP, and Fuzzy Multi - Objective Programming. Australian Journal of Basic and Applied Sciences, 9 (2), 163 - 170.
    12.
  12. Bagherzadeh Azar, M., & Dorri, B. (2010). Using ANP for evaluating suppliers in supply chain. Human Sciences Modares - management Researches in Iran, 4, 1 - 21 (In Persian).
    13.
  13. Baramichai, M., Zimmers, E. W., & Marangos, C. A. (2008) . Stochastic model for Supplier Selection and order allocation: The portfolio approach. EEC - 0434210, Center for Engineering Logistics and Distribution-  Lehigh University.
    14.
  14. Batuhan Ayhan, M., & Selcuk Kilic, H. (2015) . A two stage approach for supplier selection problem in multi – item / multi-supplier environment with quantity discounts. Computers & Industrial Engineering, 85, 1 - 12.
    15.
  15. Benyoucef, L., Ding , H., & Xie, X. (2003) . Supplier selection problem: selection criteria and methods. INRIA, Rapport de recherche, 4726.
    16.
  16. Berger, P. D., Gerstenfeld, A., & Zeng, A. Z. (2004). How many suppliers are best? A decision analysis approach. Omega - International Journal of Management Science, 32, 9 - 15.
    17.
  17. Bertsimas, J. B., Sim, M. (2004). The price of robustness. Operations Research, 52, 35 - 53.
    18.
  18. Bilsel, R. U., Ravindran, A. (2011). A multiobjective chance constrained programming model for supplier selection under uncertainty. Transportation Research Part B, 45, 1284 - 1300.
    19.
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    20.
  20. Burke, G. J., Carrillo, J. E., & Vakharia, A. J. (2007) . Single versus multiple supplier sourcing strategies, European Journal of Operational Research, 182, 95 - 112.
    21.
  21. Burton, T. T. (1988). JIT / Repetitive sourcing strategies: tying the knot with your suppliers, Production and Inventory Management Journal, 4th Quarter, 38 - 41.
    22.
  22. Chahar Soughi, S. K., & Sahraeian, R., (1999). Providing a systematic method for evaluatian and selection suppliers. 2th national Conference on Industrial Engineering, Yazd Universit, Yazd,Iran.
    23.
  23. Chamodrakas, Batis, D., & Martakos, D. (2010). Supplier selection in electronic market places using satisficing and fuzzy AHP. Expert Systems with Applications, 37, 490 - 498.
    24.
  24. Chang, D. Y. (1996) . Applications of the extent analysis method on fuzzy AHP. European Journal of Operational Research, 95, 649 - 655.
    25.
  25. Chaudhry, S., Lei, Z., & He, S. (2006). Vendor selection problem: New formulation and solution approach. IADIS International Conference Applied Computing, 437 - 441.
    26.
  26. Che, Z. H. (2010) . A genetic algorithm - based model for solving multi - period supplier selection problem with assembly sequence. International Journal of Production Research, 48, 4355 - 4377.
    27.
  27. Chen, Y. J. (2011) . Structured methodology for supplier selection and evaluation in a supply chain. Information Sciences, 181, 1651 - 1670.
    28.
  28. Chini Forooshan, P., Pourghanad, B., Aziz Mohammadi, R., & Razavi, S. H. (2007). Supplier selection under uncertainty using interval compromise programming. Journal of Industrial Management Studies, 16, 55 - 74 (In Persian).
    29.
  29. Choy, K. L., Lee, W. B., & Lo, V.  (2002). An intelligent supplier management tool for benchmarking suppliers in outsource manufacturing. Expert Systems with Applications, 22, 213 - 224.
    30.
  30. Cusumano, M. A., & Takeishi, A. (1991). Supplier relations and management: a survey of Japanese, Japanese - transplant, and U.S. auto plants. Strategic Management Journal, 12, 563 - 588.
    31.
  31. Daneshvar Rouyendegh (Erdebilli), B., & Saputro, T. E. (2014) .  Supplier selection using integrated fuzzy TOPSIS and MCGP: a case study. Procedia - Social and Behavioral Sciences, 116, 3957 - 3970.
    32.
  32. De boer, L., Labro, E., & Morlacchi, P. (2001). A review of methods supporting supplier selection. European Journal of Purchasing & Supply Management, 7, 75 - 84.
    33.
  33. Degraeve, Z., Labro, E., & Roodhooft, F. (2004) . Total cost of ownership purchasing of a service: The case of airline selection at Alcatel Bell. European Journal of Operational Research, 156, 23 - 40.
    34.
  34. Díaz - Madroñero, M., Peidro, D., & Vasant, P. (2010). Vendor selection problem by using an interactive fuzzy multi - objective approach with modified S - curve membership functions. Computers and Mathematics with Applications, 60, 1038 - 1048.
    35.
  35. Dickson, G. W. (1966). An analysis of vendor selection systems and decisions. Journal of Purchasing, 2, 5 - 17.
    36.
  36. Dyer, R. F., & Forman E. H. (1992). Group decision support with the analytic hierarchy process. Decision Support System, 8, 99 - 124.
    37.
  37. Erdem, A. S., Fadilog̃lu, M. M., & Özekici, S. (2006). An EOQ Model with Multiple Suppliers and Random Capacity. Naval Research Logistics, 53, 101 - 114.
    38.
  38. Esfandiari, N., & Seifbarghy, M. (2013). Modeling a stochastic multi - objective supplier quota allocation problem with price - dependent ordering. Applied Mathematical Modelling, 37, 1 - 11.
    39.
  39. Esmailian, M., & Rabieh, M. (2007). Supplier's evaluation and selection using Fuzzy TOPSIS method and fractional programming. 5th International Conference on Industrial Engineering,Iran.
    40.
  40. Eydi, A. R., & Fazli, L. (2013) . A multi  - period fuzzy probabilistic model for allocating orders to suppliers. Conference on Fuzzy Systems (IFSC), Qazvin Islamic Azad University, Qazvin, Iran.
    41.
  41. Faez, F., Ghodsypour, S. H., & O’Brien, C. (2009). Vendor selection and order allocation using an integrated fuzzy case - based reasoning and mathematical programming model. International Journal of Production Economics, 121, 395 - 408.
    42.
  42. Fazli, L. (2013) . A hybrid model for supplier selection and order allocation considering multi sourcing, multi periods and uncertainty. Thesis for the degree of master in the Department of Industrial Engineering for Industrial Engineering, University of Kurdistan, Sanandaj, Iran.
    43.
  43. Fors, H. N., Harraz, N. A., & Abouali, M. G. (2011). Supplier selection and order allocation supply chain management. Proceedings of the 41st International Conference on Computers and Industrial Engineering, Los Angeles, California, USA, 23 - 26.
    44.
  44. Ghobadian, A., Stainer, A., & Kiss, T. (1993). A computerized vendor rating system. In Proceeding of the First International Symposium on Logistics, Nottingham, UK: The University of Nottingham, 321 - 328.
    45.
  45. Ghodsypour, S. H., & O'Brien, C. (1998). A decision support system for suppleir selection using on integrated analytic hierarchy process and linear programing. Internation  Journal of  Production Economics, 56 - 57, 199 - 212.
    46.
  46. Guan, Z., Jin, Z., & Zou, B. (2007). A multi - objective mixed - integer stochastic programming model for the vendor selection problem under multi - product purchases. Information and Management Sciences, 18, 241 - 252.
    47.
  47. Ha, S. H., & Krishnan, R. (2008). A hybrid approach to supplier selection for the maintenance of a competitive supply chain. Expert Systems with Applications, 34, 1303 - 1311.
    48.
  48. Haleh, H., & Hamidi, A. (2011). A fuzzy MCDM model for allocating orders to suppliers in a supply chain under uncertainty over a multi - period time horizon. Expert Systems with Applications, 38, 9076 - 9083.
    49.
  49. Hammami, R., Temponi, C., & Yannick, F. (2014). A scenario - based stochastic model for supplier selection in global context with multiple buyers, currency fluctuation uncertainties, and price discounts. European Journal of Operational Research, 233 (1) , 159 -170, 2014.
    50.
  50. Hassanzadeh Amin, A., & Zhang, G. (2012). An integrated model for closed - loop supply chain configuration and supplier selection: Multi - objective approach. Expert Systems with Applications, 39, 6782 - 6791.
    51.
  51. Hassanzadeh Amin, S.,  Razmi J., & Zhang G. (2011) . Supplier selection and order allocation based on fuzzy SWOT analysis and fuzzy linear programming. Expert Systems with Applications, 38, 334 - 342.
    52.
_||_

  1. Abbasi Molai, A., & Khorram, E. (2007). Linear programming problem with interval coefficents and an interpretation for its constraints. Iranian Journal of Science & Technology, Transaction A, 31, 369 - 390.
    2.
  2. Abginehchia, S., Zanjirani Farahanib, R., & Rezapour, S. (2013).  A mathematical model for order splitting in a multiple supplier single - item inventory system. Journal of Manufacturing Systems, 32, 55 - 67.
    3.
  3. Aissaoui, N., Haouari, M., & Hassini, E. (2007). Supplier selection and order lot sizing modeling: A review. Computers & Operations Research, 34, 3516 - 3540.
    4.
  4. Amid, A., Ghodsypour, S. H., & O’Brien, C. (2009). A weighted additive fuzzy multi objective model for the supplier selection problem under price breaks in a supply Chain. International Journal of Production Economics, 121, 323 - 332.
    5.
  5. Amorim, P., Almada - Lobo, B., Barbosa - Póvoa, A. P. F. D., & Grossmann, I.E. (2014) . Combining Supplier Selection and Production - Distribution Planning in Food Supply Chains. Computer Aided Chemical Engineering, 33, 409 -  414.
    6.
  6. Arikan, F. (2013) . A fuzzy solution approach for multi objective supplier selection. Expert Systems with Applications, 40, 947 - 952.
    7.
  7. Assadipour, G., Razmi, J. (2013) . Possibilistic inventory and supplier selection model for an assembly system. International Journal of Advanced Manufacturing Technology, 67, 575 - 587.
    8.
  8. Awasthi, A., Chauhan, S. S., Goyal, S. K., Proth, J. M., (2009). Supplier selection problem for a single manufacturing uni under stochastic demand. Int. J. Production Economics, 117, 229 - 233.
    9.
  9. Azadnia, A. H., Zameri Mat Samana, M., Wonga, K. Y., Ghadimi, P., Zakuanc, N. (2012) . Sustainable supplier selection based on self - organizing map neural network and multi criteria decision making approaches. Procedia - Social and Behavioral Sciences, 65, 879 - 884.
    10.
  10. Azar, A., (2000) . Data development analysis (DEA) and Analytic Hierarchy Process (AHP) : Comparative Study. Journal of Management Studies, 28, 129 - 146 (In Persian) .
    11.
  11. Azizi, A., Yarmohammadi, Y., & Yasini, A. (2015). Superior supplier selection - A joint approach of taguchi, AHP, and Fuzzy Multi - Objective Programming. Australian Journal of Basic and Applied Sciences, 9 (2), 163 - 170.
    12.
  12. Bagherzadeh Azar, M., & Dorri, B. (2010). Using ANP for evaluating suppliers in supply chain. Human Sciences Modares - management Researches in Iran, 4, 1 - 21 (In Persian).
    13.
  13. Baramichai, M., Zimmers, E. W., & Marangos, C. A. (2008) . Stochastic model for Supplier Selection and order allocation: The portfolio approach. EEC - 0434210, Center for Engineering Logistics and Distribution-  Lehigh University.
    14.
  14. Batuhan Ayhan, M., & Selcuk Kilic, H. (2015) . A two stage approach for supplier selection problem in multi – item / multi-supplier environment with quantity discounts. Computers & Industrial Engineering, 85, 1 - 12.
    15.
  15. Benyoucef, L., Ding , H., & Xie, X. (2003) . Supplier selection problem: selection criteria and methods. INRIA, Rapport de recherche, 4726.
    16.
  16. Berger, P. D., Gerstenfeld, A., & Zeng, A. Z. (2004). How many suppliers are best? A decision analysis approach. Omega - International Journal of Management Science, 32, 9 - 15.
    17.
  17. Bertsimas, J. B., Sim, M. (2004). The price of robustness. Operations Research, 52, 35 - 53.
    18.
  18. Bilsel, R. U., Ravindran, A. (2011). A multiobjective chance constrained programming model for supplier selection under uncertainty. Transportation Research Part B, 45, 1284 - 1300.
    19.
  19. Bottani, E., & Rizzi, A. (2008) . An adapted multi - criteria approach to suppliers and products selection - an application oriented to lead - time reduction, International Journal of Production Economics, 111, 763 - 781.
    20.
  20. Burke, G. J., Carrillo, J. E., & Vakharia, A. J. (2007) . Single versus multiple supplier sourcing strategies, European Journal of Operational Research, 182, 95 - 112.
    21.
  21. Burton, T. T. (1988). JIT / Repetitive sourcing strategies: tying the knot with your suppliers, Production and Inventory Management Journal, 4th Quarter, 38 - 41.
    22.
  22. Chahar Soughi, S. K., & Sahraeian, R., (1999). Providing a systematic method for evaluatian and selection suppliers. 2th national Conference on Industrial Engineering, Yazd Universit, Yazd,Iran.
    23.
  23. Chamodrakas, Batis, D., & Martakos, D. (2010). Supplier selection in electronic market places using satisficing and fuzzy AHP. Expert Systems with Applications, 37, 490 - 498.
    24.
  24. Chang, D. Y. (1996) . Applications of the extent analysis method on fuzzy AHP. European Journal of Operational Research, 95, 649 - 655.
    25.
  25. Chaudhry, S., Lei, Z., & He, S. (2006). Vendor selection problem: New formulation and solution approach. IADIS International Conference Applied Computing, 437 - 441.
    26.
  26. Che, Z. H. (2010) . A genetic algorithm - based model for solving multi - period supplier selection problem with assembly sequence. International Journal of Production Research, 48, 4355 - 4377.
    27.
  27. Chen, Y. J. (2011) . Structured methodology for supplier selection and evaluation in a supply chain. Information Sciences, 181, 1651 - 1670.
    28.
  28. Chini Forooshan, P., Pourghanad, B., Aziz Mohammadi, R., & Razavi, S. H. (2007). Supplier selection under uncertainty using interval compromise programming. Journal of Industrial Management Studies, 16, 55 - 74 (In Persian).
    29.
  29. Choy, K. L., Lee, W. B., & Lo, V.  (2002). An intelligent supplier management tool for benchmarking suppliers in outsource manufacturing. Expert Systems with Applications, 22, 213 - 224.
    30.
  30. Cusumano, M. A., & Takeishi, A. (1991). Supplier relations and management: a survey of Japanese, Japanese - transplant, and U.S. auto plants. Strategic Management Journal, 12, 563 - 588.
    31.
  31. Daneshvar Rouyendegh (Erdebilli), B., & Saputro, T. E. (2014) .  Supplier selection using integrated fuzzy TOPSIS and MCGP: a case study. Procedia - Social and Behavioral Sciences, 116, 3957 - 3970.
    32.
  32. De boer, L., Labro, E., & Morlacchi, P. (2001). A review of methods supporting supplier selection. European Journal of Purchasing & Supply Management, 7, 75 - 84.
    33.
  33. Degraeve, Z., Labro, E., & Roodhooft, F. (2004) . Total cost of ownership purchasing of a service: The case of airline selection at Alcatel Bell. European Journal of Operational Research, 156, 23 - 40.
    34.
  34. Díaz - Madroñero, M., Peidro, D., & Vasant, P. (2010). Vendor selection problem by using an interactive fuzzy multi - objective approach with modified S - curve membership functions. Computers and Mathematics with Applications, 60, 1038 - 1048.
    35.
  35. Dickson, G. W. (1966). An analysis of vendor selection systems and decisions. Journal of Purchasing, 2, 5 - 17.
    36.
  36. Dyer, R. F., & Forman E. H. (1992). Group decision support with the analytic hierarchy process. Decision Support System, 8, 99 - 124.
    37.
  37. Erdem, A. S., Fadilog̃lu, M. M., & Özekici, S. (2006). An EOQ Model with Multiple Suppliers and Random Capacity. Naval Research Logistics, 53, 101 - 114.
    38.
  38. Esfandiari, N., & Seifbarghy, M. (2013). Modeling a stochastic multi - objective supplier quota allocation problem with price - dependent ordering. Applied Mathematical Modelling, 37, 1 - 11.
    39.
  39. Esmailian, M., & Rabieh, M. (2007). Supplier's evaluation and selection using Fuzzy TOPSIS method and fractional programming. 5th International Conference on Industrial Engineering,Iran.
    40.
  40. Eydi, A. R., & Fazli, L. (2013) . A multi  - period fuzzy probabilistic model for allocating orders to suppliers. Conference on Fuzzy Systems (IFSC), Qazvin Islamic Azad University, Qazvin, Iran.
    41.
  41. Faez, F., Ghodsypour, S. H., & O’Brien, C. (2009). Vendor selection and order allocation using an integrated fuzzy case - based reasoning and mathematical programming model. International Journal of Production Economics, 121, 395 - 408.
    42.
  42. Fazli, L. (2013) . A hybrid model for supplier selection and order allocation considering multi sourcing, multi periods and uncertainty. Thesis for the degree of master in the Department of Industrial Engineering for Industrial Engineering, University of Kurdistan, Sanandaj, Iran.
    43.
  43. Fors, H. N., Harraz, N. A., & Abouali, M. G. (2011). Supplier selection and order allocation supply chain management. Proceedings of the 41st International Conference on Computers and Industrial Engineering, Los Angeles, California, USA, 23 - 26.
    44.
  44. Ghobadian, A., Stainer, A., & Kiss, T. (1993). A computerized vendor rating system. In Proceeding of the First International Symposium on Logistics, Nottingham, UK: The University of Nottingham, 321 - 328.
    45.
  45. Ghodsypour, S. H., & O'Brien, C. (1998). A decision support system for suppleir selection using on integrated analytic hierarchy process and linear programing. Internation  Journal of  Production Economics, 56 - 57, 199 - 212.
    46.
  46. Guan, Z., Jin, Z., & Zou, B. (2007). A multi - objective mixed - integer stochastic programming model for the vendor selection problem under multi - product purchases. Information and Management Sciences, 18, 241 - 252.
    47.
  47. Ha, S. H., & Krishnan, R. (2008). A hybrid approach to supplier selection for the maintenance of a competitive supply chain. Expert Systems with Applications, 34, 1303 - 1311.
    48.
  48. Haleh, H., & Hamidi, A. (2011). A fuzzy MCDM model for allocating orders to suppliers in a supply chain under uncertainty over a multi - period time horizon. Expert Systems with Applications, 38, 9076 - 9083.
    49.
  49. Hammami, R., Temponi, C., & Yannick, F. (2014). A scenario - based stochastic model for supplier selection in global context with multiple buyers, currency fluctuation uncertainties, and price discounts. European Journal of Operational Research, 233 (1) , 159 -170, 2014.
    50.
  50. Hassanzadeh Amin, A., & Zhang, G. (2012). An integrated model for closed - loop supply chain configuration and supplier selection: Multi - objective approach. Expert Systems with Applications, 39, 6782 - 6791.
    51.
  51. Hassanzadeh Amin, S.,  Razmi J., & Zhang G. (2011) . Supplier selection and order allocation based on fuzzy SWOT analysis and fuzzy linear programming. Expert Systems with Applications, 38, 334 - 342.
    52.

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