Multiobjective supplier selection using optimisation technique for balancing supply chain

N. Arunkumar, L. Karunamoorthy, Amrish A. Lobo Shenoy, N. Thamizhvaanan and Vikram B. Naidu

International Journal of Industrial and Systems Engineering, 2008, vol. 3, issue 5, 575-593

Abstract: This paper presents an innovative method to distribute sales volume among multiple suppliers in a multiobjective, multisource supplier selection scenario using optimisation techniques. The dynamics of assigning sales volume is captured in a mathematical model purported at satisfying multiple objectives. In such a multiobjective scenario, the theory of pareto optimality is introduced to formulate the process of optimal supplier selection. Linear Integer Programming method is proposed to solve the mathematical model for an optimal solution. The mathematical model is also retrofitted to solve for models with incremental discount pricing with the help of Non-Linear Programming techniques. The results illustrate the effectiveness and applicability of the technique under the discussed scenario. The results obtained using the linear integer programming method are also compared against a conventional process like Analytic Hierarchy Process and both the methods are appraised for their merits and demerits.

Keywords: multiobjective supplier selection; multisource supplier selection; pareto optimality; sales volume; linear integer programming; incremental discount; nonlinear programming; analytical hierarchy process; AHP; supply chain balancing; supply chain management; SCM. (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=18233 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijisen:v:3:y:2008:i:5:p:575-593

Access Statistics for this article

More articles in International Journal of Industrial and Systems Engineering from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().