A fuzzy multi-criteria decision making approach for managing performance and risk in integrated procurement-production planning

Rihab Khemiri, Khaoula Elbedoui-Maktouf, Bernard Grabot and Belhassen Zouari ()
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Rihab Khemiri: University of Tunis - Faculty of Sciences of Tunis - UTM - Tunis El Manar University [University of Tunis El Manar] [Tunisia] = Université de Tunis El Manar [Tunisie] = جامعة تونس المنار (ar)
Khaoula Elbedoui-Maktouf: University of Tunis - Faculty of Sciences of Tunis - UTM - Tunis El Manar University [University of Tunis El Manar] [Tunisia] = Université de Tunis El Manar [Tunisie] = جامعة تونس المنار (ar)
Bernard Grabot: LGP - Laboratoire Génie de Production - ENIT - Ecole Nationale d'Ingénieurs de Tarbes - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse
Belhassen Zouari: Mediatron Laboratory - Higher communications school of Tunis

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Abstract: Nowadays in Supply Chain (SC) networks, a high level of risk comes from SC partners. An effective risk management process becomes as a consequence mandatory, especially at the tactical planning level. The aim of this article is to present a risk-oriented integrated procurement–production approach for tactical planning in a multi-echelon SC network involving multiple suppliers, multiple parallel manufacturing plants, multiple subcontractors and several customers. An originality of the work is to combine an analytical model allowing to build feasible scenarios and a multi-criteria approach for assessing these scenarios. The literature has mainly addressed the problem through cost or profit-based optimisation and seldom considers more qualitative yet important criteria linked to risk, like trust in the supplier, flexibility or resilience. Unlike the traditional approaches, we present a method evaluating each possible supply scenario through performance-based and risk-based decision criteria, involving both qualitative and quantitative factors, in order to clearly separate the performance of a scenario and the risk taken if it is adopted. Since the decision-maker often cannot provide crisp values for some critical data, fuzzy sets theory is suggested in order to model vague information based on subjective expertise. Fuzzy Technique for Order of Preference by Similarity to Ideal Solution is used to determine both the performance and risk measures correlated to each possible tactical plan. The applicability and tractability of the proposed approach is shown on an illustrative example and a sensitivity analysis is performed to investigate the influence of criteria weights on the selection of the procurement–production plan.

Keywords: Procurement; Supply chain management; Multi-criteria decision-making; Risk management; Fuzzy sets theory; Fuzzy logic (search for similar items in EconPapers)
Date: 2017-04-03
New Economics Papers: this item is included in nep-rmg
Note: View the original document on HAL open archive server: https://hal.science/hal-01758604v1
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Citations: View citations in EconPapers (6)

Published in International Journal of Production Research, 2017, vol. 55 (n°18), pp. 5305-5329. ⟨10.1080/00207543.2017.1308575⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01758604

DOI: 10.1080/00207543.2017.1308575

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