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An integrated multi-objective decision-making process for multi-period lot-sizing with supplier selection

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  • Ustun, Ozden
  • DemI[dot above]rtas, Ezgi Aktar

Abstract

Supplier selection is a multi-criteria problem which includes both tangible and intangible factors. In these problems if suppliers have capacity or other different constraints two problems will exist: which suppliers are the best and how much should be purchased from each selected supplier? In this paper an integrated approach of analytic network process (ANP) and multi-objective mixed integer linear programming (MOMILP) is proposed. This integrated approach considers both tangible and intangible factors in choosing the best suppliers and defines the optimum quantities among selected suppliers to maximize the total value of purchasing (TVP), and to minimize the total cost and total defect rate and to balance the total cost among periods. The priorities are calculated for each supplier by using ANP. Four different plastic molding firms working with a refrigerator plant are evaluated according to 14 criteria that are involved in the four clusters: benefits, opportunities, costs and risks (BOCR). The priorities of suppliers will also be used as the parameters of the first objective function. This multi-objective and multi-period real-life problem is solved by using previous techniques and a reservation level driven Tchebycheff procedure (RLTP). Finally the most preferred nondominated solutions are determined by considering the decision maker's (DM's) preferences and the results obtained by these techniques are compared.

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  • Ustun, Ozden & DemI[dot above]rtas, Ezgi Aktar, 2008. "An integrated multi-objective decision-making process for multi-period lot-sizing with supplier selection," Omega, Elsevier, vol. 36(4), pages 509-521, August.
    • Handle: RePEc:eee:jomega:v:36:y:2008:i:4:p:509-521
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    References listed on IDEAS

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    7. Xiongyong Zhou & Zhiduan Xu, 2018. "An Integrated Sustainable Supplier Selection Approach Based on Hybrid Information Aggregation," Sustainability, MDPI, vol. 10(7), pages 1-49, July.
    8. Gabriel Amaro & Diego Jacinto Fiorotto & Washington Alves Oliveira, 2023. "Impact analysis of flexibility on the integrated lot sizing and supplier selection problem," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 31(1), pages 236-266, April.
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    10. Lamba, Kuldeep & Singh, Surya Prakash, 2019. "Dynamic supplier selection and lot-sizing problem considering carbon emissions in a big data environment," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 573-584.
    11. Tadeusz Sawik, 2018. "Selection of a dynamic supply portfolio under delay and disruption risks," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 760-782, January.
    12. Dubey, Vivek Kumar & Chavas, Jean-Paul & Veeramani, Dharmaraj, 2018. "Analytical framework for sustainable supply-chain contract management," International Journal of Production Economics, Elsevier, vol. 200(C), pages 240-261.
    13. Faiza Hamdi & Ahmed Ghorbel & Faouzi Masmoudi & Lionel Dupont, 2018. "Optimization of a supply portfolio in the context of supply chain risk management: literature review," Journal of Intelligent Manufacturing, Springer, vol. 29(4), pages 763-788, April.
    14. Sara Rye & Emel Aktas, 2022. "A Multi-Attribute Decision Support System for Allocation of Humanitarian Cluster Resources Based on Decision Makers’ Perspective," Sustainability, MDPI, vol. 14(20), pages 1-28, October.
    15. Imane Tronnebati & Manal El Yadari & Fouad Jawab, 2022. "A Review of Green Supplier Evaluation and Selection Issues Using MCDM, MP and AI Models," Sustainability, MDPI, vol. 14(24), pages 1-22, December.
    16. Lin, Rong-Ho, 2012. "An integrated model for supplier selection under a fuzzy situation," International Journal of Production Economics, Elsevier, vol. 138(1), pages 55-61.
    17. Mukherjee, Krishnendu & Sarkar, Bijon & Bhattacharyya, Ardhendu, 2012. "Supplier selection by F-compromise method: a case study of cement industry of NE India," MPRA Paper 57786, University Library of Munich, Germany, revised 2013.
    18. Wilco van den Heuvel & Semra Ağralı & Z. Caner Taşkın, 2023. "A Decomposition Algorithm for Single and Multiobjective Integrated Market Selection and Production Planning," INFORMS Journal on Computing, INFORMS, vol. 35(6), pages 1439-1453, November.
    19. Pinior, Beate & Conraths, Franz J. & Petersen, Brigitte & Selhorst, Thomas, 2015. "Reprint of “Decision support for risks managers in the case of deliberate food contamination: The dairy industry as an example”," Omega, Elsevier, vol. 57(PA), pages 114-122.
    20. Mukherjee, Krishnendu, 2014. "Supplier selection criteria and methods: past, present and future," MPRA Paper 60079, University Library of Munich, Germany.
    21. Cui, Yaodong & Gu, Tianlong & Hu, Wei, 2009. "A cutting-and-inventory control problem in the manufacturing industry of stainless steel wares," Omega, Elsevier, vol. 37(4), pages 864-875, August.
    22. Hosseini, Seyedmohsen & Barker, Kash, 2016. "A Bayesian network model for resilience-based supplier selection," International Journal of Production Economics, Elsevier, vol. 180(C), pages 68-87.
    23. Jadidi, O. & Zolfaghari, S. & Cavalieri, S., 2014. "A new normalized goal programming model for multi-objective problems: A case of supplier selection and order allocation," International Journal of Production Economics, Elsevier, vol. 148(C), pages 158-165.
    24. Sawik, Tadeusz, 2010. "Single vs. multiple objective supplier selection in a make to order environment," Omega, Elsevier, vol. 38(3-4), pages 203-212, June.

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