Evaluating Order Allocation Sustainability Using a Novel Framework Involving Z-Number

Kuan-Yu Lin, Cheng-Lu Yeng and Yi-Kuei Lin ()
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Kuan-Yu Lin: Department of Industrial Engineering and Management, National Yang Ming Chiao Tung University, Hsinchu 300, Taiwan
Cheng-Lu Yeng: Department of Industrial Engineering and Management, National Yang Ming Chiao Tung University, Hsinchu 300, Taiwan
Yi-Kuei Lin: Department of Industrial Engineering and Management, National Yang Ming Chiao Tung University, Hsinchu 300, Taiwan

Mathematics, 2024, vol. 12, issue 16, 1-15

Abstract: The United Nations’ sustainable development goals have highlighted the significance of improving supply chain sustainability and ensuring the proper distribution of orders. This study proposes a novel framework involving Z-number, game theory, an indifference threshold-based attribute ratio analysis (ITARA), and a combined compromise solution method (CoCoSo) to evaluate the sustainability of suppliers and order allocations. To better reflect the decision makers’ current choices for the sustainability of assessed suppliers and order allocations and enhance the comprehensiveness of decision-making, the importance parameter of the supplier is obtained through game theory objectively for transforming supplier performance into order allocation performance. The Z-numbers are involved in ITARA (so-called ZITARA) and CoCoSo (so-called ZCoCoSo) to overcome the issue of information uncertainty in the process of expert evaluation. ZITARA and ZCoCoSo are used to determine the objective weights of criteria and to rank the evaluated order allocations, respectively. A case study of a China company is then presented to demonstrate the usefulness of the proposed framework and to inform their decision-making process regarding which suppliers the orders should be assigned to.

Keywords: sustainability; order allocation; Z-number; indifference threshold-based attribute ratio analysis (ITARA); combined compromise solution method (CoCoSo) (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2024
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