A supplier selection and order allocation model with multiple transportation alternatives

Mohsen Jafari Songhori, Madjid Tavana*, Ali Azadeh, Mohammad Hossien Khakbaz

*Corresponding author for this work

    Research output: Contribution to journalArticleAcademicpeer-review

    76 Citations (Scopus)

    Abstract

    Numerous analytical methods ranging from simple weighted scoring to complex mathematical programming approaches have been proposed to solve supplier selection and order allocation problems. However, the traditional methods too often fail to consider: (1) situations in which goods are transported from a supplier to a receiver using different transportation alternatives (TAs) and (2) a finite planning horizon consisting of multiple discrete time periods. We present a structured framework with two separate but dependent phases. In the selection phase, we use a data envelopment analysis model to determine the relative efficiency of the suppliers and the TAs. In the allocation phase, we use a multi-objective mixed integer programming model with two objectives for minimizing the total costs and maximizing the overall efficiencies. The contribution of this paper is threefold: (1) It provides a comprehensive and systematic framework that embraces both quantitative and qualitative criteria; (2) it addresses the need in the supplier evaluation literature for methods that considers different TAs in the supplier selection and order allocation decisions encompassing multiple discrete time periods; and (3) it uses a real-world case study to demonstrate the applicability of the proposed framework and exhibit the efficacy of the procedures and algorithms.

    Original languageEnglish
    Pages (from-to)365-376
    Number of pages12
    JournalInternational journal of advanced manufacturing technology
    Volume52
    Issue number1-4
    DOIs
    Publication statusPublished - 1 Jan 2011

    Keywords

    • Data envelopment analysis
    • Order allocation
    • Supplier selection
    • Transportation alternative

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