Supplier selection and order allocation using two-stage hybrid supply chain model and game-based order price

Samuel Yousefi (), Mustafa Jahangoshai Rezaee () and Maghsud Solimanpur ()
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Samuel Yousefi: Urmia University of Technology
Mustafa Jahangoshai Rezaee: Urmia University of Technology
Maghsud Solimanpur: Urmia University

Operational Research, 2021, vol. 21, issue 1, No 20, 553-588

Abstract: Abstract Achieving an efficient supply chain is impossible without integrating supply chain processes and extending long-term relationships between its members. Evaluating the process, selecting a set of suppliers, and allocating orders are effective parameters in the coordination among supply chain members. In this study, to achieve an organized process, a two-stage hybrid model is presented to choose efficient suppliers, allocate order, and determine price in a supply chain with regard to coordination among members. First, an integrated Multi-Objective Mixed-Integer Nonlinear Programming (MOMINLP) model is provided to minimize costs and evaluate suppliers simultaneously. The proposed model includes a single-buyer multi-vendor coordination model and Data Envelopment Analysis (DEA). Then, the model is simplified and converted into a quadratic programming model. In the second stage, a model is presented to determine the price agreed upon by the buyer and the selected efficient suppliers using the bargaining game and the Nash equilibrium concept. The purpose of this model is to maximize the parties’ utilities considering the order quantity specified in the first stage. At the end of this paper, the data taken and adapted from the previous researches are applied to show the abilities of the proposed models.

Keywords: Buyer-vendor coordination; Supplier selection; Order allocation; Order price; Data envelopment analysis; Nash bargaining game (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s12351-019-00456-6

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