The LR-Type Fuzzy Multi-Objective Vendor Selection Problem in Supply Chain Management

Irfan Ali, Armin Fügenschuh, Srikant Gupta and Umar Muhammad Modibbo
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Irfan Ali: Department of Statistics & Operations Research, Aligarh Muslim University, Aligarh 202002, India
Armin Fügenschuh: Brandenburg University of Technology Cottbus-Senftenberg, Platz der Deutschen Einheit 1, 03046 Cottbus, Germany
Srikant Gupta: Jaipuria Institute of Management, Jaipur 302033, India
Umar Muhammad Modibbo: Department of Statistics & Operations Research, Aligarh Muslim University, Aligarh 202002, India

Mathematics, 2020, vol. 8, issue 9, 1-25

Abstract: Vendor selection is an established problem in supply chain management. It is regarded as a strategic resource by manufacturers, which must be managed efficiently. Any inappropriate selection of the vendors may lead to severe issues in the supply chain network. Hence, the desire to develop a model that minimizes the combination of transportation, deliveries, and ordering costs under uncertainty situation. In this paper, a multi-objective vendor selection problem under fuzzy environment is solved using a fuzzy goal programming approach. The vendor selection problem was modeled as a multi-objective problem, including three primary objectives of minimizing the transportation cost; the late deliveries; and the net ordering cost subject to constraints related to aggregate demand; vendor capacity; budget allocation; purchasing value; vendors’ quota; and quantity rejected. The proposed model input parameters are considered to be LR fuzzy numbers. The effectiveness of the model is illustrated with simulated data using R statistical package based on a real-life case study which was analyzed using LINGO 16.0 optimization software. The decision on the vendor’s quota allocation and selection under different degree of vagueness in the information was provided. The proposed model can address realistic vendor selection problem in the fuzzy environment and can serve as a useful tool for multi-criteria decision-making in supply chain management.

Keywords: multi-objective optimization; vendor selection problem; weighted criterion; LR fuzzy numbers; fuzzy goal programming (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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