International supplier selection and order allocation with environmental costs and pollution control considerations: an integrated FMCDM-MODM model
摘要
Although supplier selection and order allocation problem is vastly studied in previous literature, it is less investigated by international companies. The present paper is intended to integrate Fuzzy multiple-criteria decision making (FMCDM) and multiple-objective decision making (MODM) models to optimize sourcing problems of international companies. First, a literature review is used to determine potential criteria of supplier selection, and an Analytic Hierarchy Process (AHP) is then involved to finalize them. Second, a decision making trial and evaluation laboratory (DEMATEL) is applied to identify the cause-effect relationship of criteria. Next, a Fuzzy Analytic Network Process (FANP) is used to rank four potential suppliers of an international company. Third, a multi-supplier, multi-product, and multi-period Bi-Objective Mixed-Integer Linear Programming (BOMILP) model is used to determine the optimum purchasing quantity of products from suppliers. The Model minimizes the cost and maximizes the purchasing amount of items according to the scores of suppliers. Next, an ε-constraint method is applied to solve the model using GAMS software. The significant concerns of sourcing problems including supplier selection criteria, assessment, and order allocation, are optimized in this research. Finally, some implications and directions for future research are discussed.