Supply Chain Management: Supplier Selection Problem with Multi-objective Considering Incremental Discount

• Main Authors: Amir, Azizi, Darestani, Soroush Avakh, Ghavami, Samane
• Format: Conference or Workshop Item
• Language: English
• Published: 2013
• Subjects: T Technology (General)
• Online Access: http://umpir.ump.edu.my/id/eprint/6021/1/fkp-Amir-Asia_Pacific_IE%2C_2013.pdf; http://umpir.ump.edu.my/id/eprint/6021/

Supplier selection is the process by which firms identify, evaluate, and contract with suppliers. Supplier evaluation and selection are became an important but complex process due to the fact that they involve a large number of factors and decisions. In this paper, a multi-objective model is developed based on decision on quality, service level and cost of purchased goods. The difference of this research is considering discount into model. A numerical example for three proposed suppliers is defined and model has been solved in two steps. Firstly, single-objective and secondly multi-objective approach is employed to solve the model. An incremental discount is added to model to find out the optimum supplier selection. According to metric solution, results can predict optimum selection of suppliers as well as the purchased goods amount. The results show that single objective problem in and functions have better result rather than multi-objective function. According to the developed model, when an incremental offer from supplier is dedicated, the organization may lead to select the optimum supplier based on the constraint and multi objective as multiple products are supposed to supply.