A Decision-Making Approach for Supplier Selection in the Presence of Supply Risk

Abstract

In order to deal with the various kind of risks in a supply chain, we need to have different approaches. In this study, we propose a mathematical programming model to manage the supply risk considering multi layer feature of the supply chain. The aim of this model is managing the supply chain risk by controlling the selection of suppliers. By having this approach, we aim to lower the risk of supplier disruption. We examine various datasets to observe the behaviour of the proposed model in different data sizes through the several steps. Analysing the results of different datasets, we show the trend of objective value by increasing data sizes. Besides, we analyse the increasing ratio of cost within different steps of the model. Finally, we discuss the effect of our proposed approach on the total cost.