A robust multi-objective global supplier selection model under currency fluctuation and price discount

Abstract

Robust supplier selection problem, in a scenario-based approach has been proposed, when the demand and exchange rates are subject to uncertainties. First, a deterministic multi-objective mixed integer linear programming is developed; then, the robust counterpart of the proposed mixed integer linear programming is presented using the recent extension in robust optimization theory. We discuss decision variables, respectively, by a two-stage stochastic planning model, a robust stochastic optimization planning model which integrates worst case scenario in modeling approach and finally by equivalent deterministic planning model. The experimental study is carried out to compare the performances of the three models. Robust model resulted in remarkable cost saving and it illustrated that to cope with such uncertainties, we should consider them in advance in our planning. In our case study different supplier were selected due to this uncertainties and since supplier selection is a strategic decision, it is crucial to consider these uncertainties in planning approach.

Integrating supplier selection with inventory management under supply disruptions

“…Integration of supplier selection and inventory management has received massive attention in the literature (Keskin, Melouk, and Meyer 2010;Guo and Li 2014;Jain et al 2015;Firouz, Keskin, and Melouk 2017;Zarindast, Seyed Hosseini, and Pishvaee 2017;Hlioui, Gharbi, and Hajji 2017;Saputro, Figueira, and Almada-Lobo 2019). Guo and Li (2014) addressed an integrated supplier selection problem under a stochastic inventory system incorporating demand variability.…”

“…However, this study was limited to the selection of two suppliers without taking into account the order allocation. Zarindast, Seyed Hosseini, and Pishvaee (2017) incorporated the changes in purchasing price as the result of currency fluctuation in supplier selection. Keskin, Melouk, and Meyer (2010) and Firouz, Keskin, and Melouk (2017) addressed the integrated supplier selection and inventory management, incorporating stochastic demand and suppliers' quality.…”

“…It entails a proactive strategy (Snyder et al 2016), as well as proper supplier selection (Tomlin 2006). Unfortunately, most of the studies on supplier selection, particularly those integrating inventory management, disregarded supply disruptions (Guo and Li 2014;Jain et al 2015;Zarindast, Seyed Hosseini, and Pishvaee 2017;Hlioui, Gharbi, and Hajji 2017). The distinguishing studies presented by Saputro, Figueira, and Almada-Lobo (2019), Meyer (2010), andFirouz, Keskin, andMelouk (2017) attempted to mitigate the risk of supply disruptions through appropriate supplier selection and inventory replenishment.…”

Shapley value-based multi-objective data envelopment analysis application for assessing academic efficiency of university departments

“…Another index, that is, Malmquist DEA-based productivity index is used to evaluate the changes in productivity in the technical efficiency and technology frontier (Abri and Mahmoudzadeh 2015). In another case, the efficiency scores obtained in DEA model is then applied to a mixed integer scenario-based stochastic programming model for a supplier selection problem (Zarindast et al 2017). The objective functions include minimizing the total purchasing cost over the planning horizon and maximizing the rank of suppliers.…”

Supply Chain Network Optimization by Considering Cost and Service Level Goals

“…Cárdenas-Barrón et al [9] developed an algorithm based on a reduce and optimize approach for the multi-product, multi-period supplier selection and lot sizing problem. Finally, Zarindast et al [10] also focused on supplier selection problem and proposed a robust multi-objective global supplier selection model that works under demand and exchange rate uncertainties and takes care about price discounts. In addition, many researchers focused on traditional or closed-loop supply chain network design problem and proposed single-objective or multi-objective models as follows.…”