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Vendor selection and order allocation using an integrated fuzzy case-based reasoning and mathematical programming model

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  • Faez, F.
  • Ghodsypour, S.H.
  • O'Brien, C.

Abstract

A basic part of the logistic management of companies is the purchasing function, and the appropriate selection of vendors and allocating orders among them is one of the prime responsibilities of this function. Many conceptual and analytical models have been developed for addressing the vendor selection problem (VSP). This paper focuses on a case-based reasoning (CBR) approach which is a recently recommended method for solving the VSP by making use of previous similar situations. Having applied fuzzy set theory in the proposed model--as a novel innovation--the vague nature of some selection criteria has been incorporated by utilizing the linear membership function of fuzzy type to quantify the vagueness in decision parameters. Moreover, a mixed integer programming model is employed to simultaneously consider suitable vendor selection and order allocation; due to the purchase situation of vendors derived from the CBR system, and with respect to such realistic constraints as meeting the buyer's demand, vendors' capacity, etc.

Suggested Citation

  • Faez, F. & Ghodsypour, S.H. & O'Brien, C., 2009. "Vendor selection and order allocation using an integrated fuzzy case-based reasoning and mathematical programming model," International Journal of Production Economics, Elsevier, vol. 121(2), pages 395-408, October.
    • Handle: RePEc:eee:proeco:v:121:y:2009:i:2:p:395-408
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    References listed on IDEAS

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    1. Ghodsypour, S. H. & O'Brien, C., 1998. "A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming," International Journal of Production Economics, Elsevier, vol. 56(1), pages 199-212, September.
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    4. Weber, Charles A. & Current, John R. & Desai, Anand, 1998. "Non-cooperative negotiation strategies for vendor selection," European Journal of Operational Research, Elsevier, vol. 108(1), pages 208-223, July.
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    Cited by:

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    3. Kannan Govindan & R. Sivakumar, 2016. "Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches," Annals of Operations Research, Springer, vol. 238(1), pages 243-276, March.
    4. Wang, Xiaojun & Chan, Hing Kai & Yee, Rachel W.Y. & Diaz-Rainey, Ivan, 2012. "A two-stage fuzzy-AHP model for risk assessment of implementing green initiatives in the fashion supply chain," International Journal of Production Economics, Elsevier, vol. 135(2), pages 595-606.
    5. Raja Awais Liaqait & Salman Sagheer Warsi & Taiba Zahid & Usman Ghafoor & Muhammad Shakeel Ahmad & Jeyraj Selvaraj, 2021. "A Decision Framework for Solar PV Panels Supply Chain in Context of Sustainable Supplier Selection and Order Allocation," Sustainability, MDPI, vol. 13(23), pages 1-25, November.
    6. Mohammed, Ahmed & Harris, Irina & Govindan, Kannan, 2019. "A hybrid MCDM-FMOO approach for sustainable supplier selection and order allocation," International Journal of Production Economics, Elsevier, vol. 217(C), pages 171-184.
    7. Hosseininasab, Amin & Ahmadi, Abbas, 2015. "Selecting a supplier portfolio with value, development, and risk consideration," European Journal of Operational Research, Elsevier, vol. 245(1), pages 146-156.
    8. Kannan Govindan & R. Sivakumar, 2016. "Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches," Annals of Operations Research, Springer, vol. 238(1), pages 243-276, March.
    9. Saheeb Ahmed Kayani & Salman Sagheer Warsi & Raja Awais Liaqait, 2023. "A Smart Decision Support Framework for Sustainable and Resilient Supplier Selection and Order Allocation in the Pharmaceutical Industry," Sustainability, MDPI, vol. 15(7), pages 1-30, March.
    10. Xu, Jiuping & Ding, Can, 2011. "A class of chance constrained multiobjective linear programming with birandom coefficients and its application to vendors selection," International Journal of Production Economics, Elsevier, vol. 131(2), pages 709-720, June.
    11. Dey, Prasanta Kumar & Bhattacharya, Arijit & Ho, William, 2015. "Strategic supplier performance evaluation: A case-based action research of a UK manufacturing organisation," International Journal of Production Economics, Elsevier, vol. 166(C), pages 192-214.
    12. Ekici, Ali, 2013. "An improved model for supplier selection under capacity constraint and multiple criteria," International Journal of Production Economics, Elsevier, vol. 141(2), pages 574-581.
    13. Tavana, Madjid & Di Caprio, Debora, 2016. "Modeling synergies in multi-criteria supplier selection and order allocation: An application to commodity tradingAuthor-Name: Sodenkamp, Mariya A," European Journal of Operational Research, Elsevier, vol. 254(3), pages 859-874.
    14. Elham Dehghan Manshadi & Mohamad Reza Mehregan & Hossein Safari, 2015. "Supplier Classification Using UTADIS Method Based on Performance Criteria," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(2), pages 31-45, February.
    15. Wong, Bo K. & Lai, Vincent S., 2011. "A survey of the application of fuzzy set theory in production and operations management: 1998-2009," International Journal of Production Economics, Elsevier, vol. 129(1), pages 157-168, January.

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