Sustainable supplier selection and order allocation based on stochastic programming and dynamic programming

Document Type : Research Paper

Authors

1 Industrial Engineering Department, Quchan University of Technology, Quchan, Iran

2 Industrial Engineering Department, Yazd University, Yazd, Iran

3 Department of ISOM, California State University, Dominguez Hills, California, USA

10.22070/jqepo.2024.17786.1260

Abstract

 In recent years, supplier selection (SS) has been one of the fundamental issues in the supply chain
(SC). Sustainable suppliers are selected based on the quantitative and qualitative evaluation of economic,
environmental, and social studies. This paper examines sustainable SS and order allocation (OA) for a single
product in a multistage setting. To model the problem, in the first step, the best-worst method (BWM) is used
to determine the weights of the sustainability criteria. Then, given the uncertainty of personal judgment,
evidential reasoning (ER) is used to evaluate suppliers. Suppliers are also compared based on the minimum
and maximum utility function in case of lack of information. In the next step, a model is designed to optimize
suppliers' total purchase value (TVP) and optimize total purchase cost (TCP). Demand is assumed to be
random. This assumption leads to a set of scenarios based on the time horizon. To solve the model, a dynamic
programming (DP) is presented. Finally, a case study is given to detail the methodology. 

Keywords

References

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Journal of Quality Engineering and Production Optimization
Volume 9, Issue 1
May 2024
Pages 115-148

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