Multi-objective optimisation model of supplier selection and order allocation problem in a hospital: a case study

Cucuk Nur Rosyidi, Ryan Adesta Yudhatama and Pringgo Widyo Laksono

International Journal of Procurement Management, 2023, vol. 17, issue 4, 541-563

Abstract: This study aims to determine a set of suppliers using sustainability criteria and the optimal order allocation to the selected suppliers at a University Hospital in Central Java, Indonesia. In this research, we propose the combination of two multi-criteria decision-making (MCDM) approaches to determine the best supplier, namely, best-worst method (BWM) and the measurement alternatives and ranking according to compromise solution (MARCOS). Multi-objective mixed-integer linear programming (MOMILP) is then used to determine the optimal quantity of drug orders. A sensitivity analysis studies the model's sensitivity to some parameters. The results show that the model is sensitive to the changes in purchasing price and defect rate.

Keywords: supplier selection; BWM; MARCOS; order allocation; multi-objective linear programming. (search for similar items in EconPapers)
Date: 2023
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