A hybrid method for solving supplier selection and order allocation problem

摘要

The supplier selection and order allocation decisions are very difficult and complex decisions for the supply function manager. Integrated they both decisions are important for the efficiency of supply chains. In this paper, we propose an integrated method for solving supplier selection and order allocation problem. We proposed a modified TOPSIS named Meaningful Mixed Data TOPSIS analysis (MMD-TOPSIS) based on meaningful monotonic normalization procedures for mixed data in order to find a robust ranking of suppliers according to their meaningful suitability indices. Then, we formulated a bi-objective linear optimization model to determine what we called the fair order allocation among suppliers, which is based on a meaningful suitability index. We proposed an illustrative example that solved by Cplex software to show the effectiveness of our mathematical model and to answer of the strategy questions.