Risk-averse supplier selection and order allocation in the centralized supply chains under disruption risks

Esmaeili-Najafabadi, Elham; Azad, Nader; Nezhad, Mohammad Saber Fallah

doi:10.1016/j.eswa.2021.114691

Cited by 45 publications

(12 citation statements)

References 110 publications

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“…These criteria are the technical quality of products, timely deliveries and price competitiveness (Alikani et al, 2019;Hosseini et al, 2019;Taherdoost & Brard, 2019). It should also be noted that in recent years, more and more researchers, as a criterion for evaluating suppliers as a criterion of mitigation risk in supply chains, also indicate activities limiting the negative impact on the environment (Lahane & Kant, 2021;Esmaeili-Najafabadi, 2021). Therefore, it can be concluded that the results of empirical research carried out in manufacturing companies operating on the Polish market presented in the article are consistent with the current perceived global trends.…”

Section: Discussion Of the Resultsmentioning

confidence: 99%

Role of supplier evaluation criteria in risk mitigation related to purchasing process

Urbaniak

2021

Engineering Management in Production and Services

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The article aims to present the role of supplier evaluation criteria in reducing purchasing risk. Before a purchasing enterprise starts cooperating with suppliers, it set specific requirements and expectations. The fulfilment of these requirements and expectations is verified through the evaluation of suppliers. Evaluation results should indicate potential risks that may arise in the development of partnership cooperation. The article includes the results of empirical research conducted using the computer-assisted telephone interviewing (CATI) technique in medium and large manufacturing companies operating in Poland. The results of the conducted empirical research indicate that companies wishing to partner with suppliers try to limit the level of risk associated with purchases. When evaluating suppliers, manufacturers focus mainly on reducing the risk associated with the defective technical quality of products, timely deliveries, delivery flexibility, time to restore continuity of deliveries, completeness of order fulfilment and delivery documentation, as well as price competitiveness. Also, in the evaluation of suppliers, companies operating in Poland are beginning to pay attention to the reduction of negative environmental impact.

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Section: Discussion Of the Resultsmentioning

confidence: 99%

Role of supplier evaluation criteria in risk mitigation related to purchasing process

Urbaniak

2021

Engineering Management in Production and Services

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“…In the proposed approach, the ANN model is used to classify the decision-maker's risk attitude. Elham [32] proposes a mixed-integer non-linear programming (MINLP) model for the integrated supplier selection and order allocation in a centralized supply chain considering the disruption risks and a risk-averse decision-maker. In the latter case, they apply two types of risk assessment tools introduced in the finance literature to analyze the decision-maker's behavior: value-at-risk (VaR) and conditional value-at-risk (CVaR).…”

Section: Risk Aversion In Supplier Selectionmentioning

confidence: 99%

A Two-Stage Auction Mechanism for 3PL Supplier Selection under Risk Aversion

Feng

et al. 2021

Sustainability

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The third party logistics (3PL) suppliers selection is a key issue in sustainable operation of fourth party logistics (4PL). A two-stage auction mechanism is designed for the selection of 3PL suppliers. Different from previous studies, the paper considers risk preference of 4PL integrators during the auction and uses the prospect theory to establish the auction scoring function of 4PL integrators. First, a first score sealed auction (FSSA) mechanism is used to solve the selection problem. However, the results show that FSSA is not an ideal method. Hence, the English auction (EA) mechanism is combined with the FSSA mechanism to form a two-stage auction. The FSSA is taken as the first stage auction, and the EA is taken as the second stage auction, and the two-stage auction mechanism is constructed. The two-stage auction can improve the utility of the 4PL integrator and the auction efficiency. In addition, for the degree of disclosure of attribute weights in the scoring function, two states, complete information and incomplete information is designed. In case analysis, the validity of the designed two-stage auction mechanism is verified. The 4PL integrator can obtain higher utility under the risk-neutral auction than the risk-averse auction. The complete information auction does not make the 4PL integrator obtain higher utility than the incomplete information auction.

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“…Supply chain resilience is the ability of a network to withstand disruptions, adaptation, and recovery until customer demand is met and performance is guaranteed (Hosseini et al 2019a, b). Multiple sourcing strategies, backup supplier, supplier recovery, supplier fortification, and prepositioned inventory have been reported as effective risk mitigation strategies in the resilient supply chain (Wang et al 2022;Wofuru-Nyenkeet al 2022;Esmaeili-Najafabadi et al 2021).…”

Section: Introductionmentioning

confidence: 99%

Green-Resilient Supplier Selection and Order Allocation Under Disruption by Utilizing Conditional Value at Risk: Mixed Response Strategies

Taghavi

Ghezavati

Bidhandi

et al. 2022

Process Integr Optim Sustain

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Two important decisions in supply chains and logistics systems design are the supplier selection and order allocation (SS&OA) problem and the vehicle routing problem (VRP). Supply disruption may reduce the capacity of suppliers, and the transportation network disruption may decrease the number of vehicles in the fleet and disrupt some routes. Also, increasing environmental regulations and environmental awareness makes companies pay more attention to green supply chain management (GSCM). In this paper, we integrate green and resilient supplier selection and order allocation decisions with vehicle routing decisions under disruption. We present a multiproduct two-stage risk-averse mixed-integer stochastic linear programming for the green and resilient supplier selection and order allocation integrated with vehicle routing (G&RSS&OA-V) problem. We consider resilient strategies before disruption, including multiple sourcing, supplier fortification, prepositioned inventory at the protected supplier, and contract with third-party logistics providers (3PLs). The objective function is to minimize the total mean-risk cost and the cost of greenhouse emissions. We use conditional value at risk (CVaR) as a risk measure to control the risk of worst-case cost. The most significant decisions of this model are the strategic decisions of determining the optimal suppliers and the operational decisions of vehicles routing under disruption simultaneously. Other decisions include determining which suppliers should be fortified, the amount to be transported to the hybrid manufacturing-distribution (HMD) center through the supplier or prepositioned emergency inventory, and the amount of lost sales. In order to validate the proposed model and its features, several numerical examples along with sensitivity analysis are performed by GAMS software, which shows the efficiency and application of the developed model, and some managerial insights are reported. The results of the sensitivity analysis show that as α increases from 0.1 to 0.9, the mean-CVaR objective function cost increases to 13.2%. As λ increases from 0.1 to 0.9, the mean-CVaR objective function cost increases to 35.6%. The increase of these two risk factors makes the proposed model more risk-averse. As the expected shortage cost increases by 150%, the mean-CVaR objective function cost increases to 36% while the amount of expected shortage decreases by 56%.

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Risk-averse supplier selection and order allocation in the centralized supply chains under disruption risks

Cited by 45 publications

References 110 publications

Role of supplier evaluation criteria in risk mitigation related to purchasing process

Role of supplier evaluation criteria in risk mitigation related to purchasing process

A Two-Stage Auction Mechanism for 3PL Supplier Selection under Risk Aversion

Green-Resilient Supplier Selection and Order Allocation Under Disruption by Utilizing Conditional Value at Risk: Mixed Response Strategies

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