A max-min fuzzy approach for supplier selection and order allocation problem with transportation costs: Genetic algorithm

Document Type : Research Paper

Authors

Department of Industrial Engineering, Faculty of Engineering, Kharazmi University, Tehran, Iran

Abstract

In this paper, we study a supplier selection and order allocation problem with in a multi-objective and fuzzy environment. Transportation costs and quantity discount are taken into account in the problem. We assume four common objectives as total costs, on-time delivery rate, defective rate, and purchasing value. We utilize a max-min approach such that the min-operator finds the fuzzy decision that simultaneously satisfies all the fuzzy objectives. Then the maximizing decision is determined to be the maximum degree of membership for the fuzzy decision. We use the non-linear S-shape membership functions to express the vague aspiration levels of the DM’s objective. According to the defined fuzzy membership functions and applying Bellman–Zadeh’s maximization principle, the fuzzy multi objective model is transformed into a single objective model. A genetic algorithm is applied to solve the multi objective fuzzy supplier selection and order allocation problem. Computational results are presented using numerical examples.

Keywords

Main Subjects


Aköz, O., & Petrovic, D. “A fuzzy goal programming method with imprecise goal hierarchy”, Eur. J. Oper. Res.181(3), pp. 1427-1433 (2007).
Amid, A., Ghodsypour, S. H., & O’Brien, C. “A weighted additive fuzzy multiobjective model for the supplier selection problem under price breaks in a supply chain”, Int. J. Prod. Econ., 121(2), pp. 323–332 (2009).
Arikan, F. “A fuzzy solution approach for multi objective supplier selection”, Expert Syst. Appl.40(3), pp. 947-952 (2013).
Ballou, R. H. Business Logistics Management. Upper Saddle River, NY Prentice Hall (1992).
Bellman, R., & Zadeh, L.A.,  “Decision making in a fuzzy environment”, Management Science, 17, pp. 141-146 (1970).
Burke, G. J., Carrillo, J., & Vakharia, A. J. “Heuristics for sourcing from multiple suppliers with alternative quantity discounts”, Eur. J. Oper. Res., 186(1), pp. 317–329 (2008).
Çebi, F., & Otay, İ. “A two-stage fuzzy approach for supplier evaluation and order allocation problem with quantity discounts and lead time”, Inf. Sci., 339, pp. 143-157 (2016).
Chen, L. H., & Tsai, F. C. “Fuzzy goal programming with different importance and priorities”, Eur. J. Oper. Res.133(3), pp. 548-556 (2001).
Dahel, N.-E. “Vendor selection and order quantity allocation in volume discount environments”, Suppl. Chain Manag.: Int. J., 8(4), pp. 335–342 (2003).
Demirtas E.A., & Üstün, Ö. “An integrated multiobjective decision making process for supplier selection and order allocation”, Omega, 36, pp. 76–90 (2008).
Ebrahim, R. M., Razmi, J., & Haleh, H. “Scatter search algorithm for supplier selection and order lot sizing under multiple price discount environment”, Adv. Eng. Soft., 40(9), pp. 766–776 (2009).
Erginel, N., & Gecer, A. “Fuzzy multi-objective decision model for calibration supplier selection problem”, Comput. Indust. Eng., 102, pp. 166-174 (2016).
Govindan, K., Rajendran, S., Sarkis, J., & Murugesan, P. “Multi criteria decision making approaches for green supplier evaluation and selection: a literature review”, J. Clean. Prod.98, pp. 66-83 (2015).
Govindan, K., Darbari, J. D., Agarwal, V., & Jha, P. C. “Fuzzy multi-objective approach for optimal selection of suppliers and transportation decisions in an eco-efficient closed loop supply chain network”, J. Clean. Prod., 165, pp. 1598-1619 (2017).
Guo, C., & Li, X. “A multi-echelon inventory system with supplier selection and order allocation under stochastic demand”, Int. J. Prod. Econ.151, pp. 37-47 (2014).
Hamdan, S., & Cheaitou, A. “Supplier selection and order allocation with green criteria: An MCDM and multi-objective optimization approach”, Comput. Oper. Res.81, pp. 282-304 (2017-a).
Hamdan, S., & Cheaitou. A. “Dynamic green supplier selection and order allocation with quantity discounts and varying supplier availability”, Comput. Indust. Eng., 110, pp. 573–589 (2017-b).
Kamali, A., Fatemi-Ghomi, S., & Jolai, F. “A multi-objective quantity discount and joint optimization model for coordination of a single-buyer multi-vendor supply chain”, Comput. Math. Appl.62(8), pp. 3251-3269 (2011).
Kannan, D., Khodaverdi, R., Olfat, L., Jafarian, A., & Diabat, A. “Integrated fuzzy multi criteria decision making method and multi-objective programming approach for supplier selection and order allocation in a green supply chain”, J. Clean. Prod.47, pp. 355-367 (2013).
Kokangul, A., & Susuz, Z. “Integrated analytical hierarch process and mathematical programming to supplier selection problem with quantity discount”, Appl. Math. Model., 33(3), pp. 1417–1429 (2009).
Lee, E. S., & Li, R. J. “Fuzzy multiple objective programming and compromise programming with Pareto optimum”, Fuzzy Set. Syst.53(3), pp. 275-288 (1993).
Li, X. Q., Zhang, B., Li, H., “Computing efficient solutions to fuzzy multiple objective linear programming problems”, Fuzzy Set. Syst., 157(10), pp. 1328-1332 (2006).
Mansini, R., Savelsbergh, M. W. P., & Tocchella, B. “The supplier selection problem with quantity discounts and truckload shipping”, Omega, 40(4), pp. 445–455 (2012).
Moghaddam, K.S., “Fuzzy multi-objective model for supplier selection and order allocation in reverse logistics systems under supply and demand uncertainty”, Expert Syst. Appl.. 42, pp. 6237–6254 (2015).
Pazhani, S., Ventura, J. A., & Mendoza, A. “A serial inventory system with supplier selection and order quantity allocation considering transportation costs”, Appl. Math. Model.40(1), pp. 612-634 (2016).
Razmi, J., & Maghool, E. “Multi-item supplier selection and lot-sizing planning under multiple price discounts using augmented e-constraint and Tchebycheff method”, Int. J. Adv. Manuf. Technol., 49(1–4), pp. 379–392 (2010).
Tiwari, R. N., Dharmar, S., & Rao, J. R. “Fuzzy goal programming—an additive model”, Fuzzy Set. Syst.24(1), pp. 27-34 (1987).
Wang, T.-Y., & Yang, Y.-H. “A fuzzy model for supplier selection in quantity discount environments”, Expert Syst. Appl., 36(10), pp. 12179–12187 (2009).
Wu, Y. K., & Guu, S. M. “A compromise model for solving fuzzy multiple objective linear programming problems”, J. Chinese Ins. Indust. Eng.18(5), pp. 87-93 (2001).
Xia, W., & Wu, Z. “Supplier selection with multiple criteria in volume discount environments”, Omega35(5), pp. 494-504 (2007).
Zadeh, Lotfi A., “Fuzzy sets”, Inf. Control, 8(3), pp. 338-353 (1965).
Zadeh, Lotfi A., “Fuzzy sets as a basis for a theory of possibility”,Fuzzy Sets and Systems, 1, pp. 3-28 (1978).
Zimmermann, H.-J. “Fuzzy programming and linear programming with several objective functions”, Fuzzy Sets and Systems, 1, 45-55 (1978).